Naira gains 1.86% in September as average dollar rate falls to N1,328.28

The naira strengthened against the dollar in September 2026, with the average spot exchange rate falling 1.86 per cent to N1,328.28 per dollar from N1,353.41 in August.

The lower average rate means fewer naira were needed, on average, to buy one dollar during the month. It also came with reduced fluctuations in the foreign exchange market.

Narrower trading range

Foreign exchange data showed the naira traded between N1,320 and N1,334 per dollar in September. In August, it traded within a wider range of N1,335.50 to N1,365.10.

The difference between the highest and lowest rates fell to N14 in September from N29.60 in August. That is a reduction of N15.60, or about 52.70 per cent, in the monthly trading range.

The September range stayed below the August range throughout the period. The highest September rate of N1,334 was N1.50 below the lowest August rate of N1,335.50. The lowest September rate of N1,320 was N45.10 below the highest August rate of N1,365.10.

Average rate falls by N25.13

The average exchange rate fell by N25.13 between August and September. August averaged N1,353.41 per dollar, while September averaged N1,328.28. The movement represented an appreciation of about 1.86 per cent for the naira.

The figures point to both a stronger average exchange rate and less volatility during the month. The narrower gap between the high and low rates suggests exchange rate movements became less pronounced than in August.

What it means for businesses and consumers

A stronger naira could reduce the local currency cost of dollar-denominated purchases for businesses that depend on imported raw materials, machinery and other foreign inputs. The benefit would depend on the rates at which they can access foreign exchange.

A more stable exchange rate could also help companies with foreign currency obligations plan better by reducing uncertainty over the naira amount needed to meet dollar payments. Firms with large import bills or foreign currency debt would gain if the improved rate and lower volatility persist.

For consumers, sustained appreciation would help moderate the cost of imported goods and production inputs. The extent to which that translates into lower retail prices would depend on other costs, existing inventories and how quickly businesses adjust prices.

The sustainability of the improvement will depend on foreign exchange supply and demand and other market conditions in the months ahead.