Naira gains N13 against dollar as weekly FX turnover drops by $1.05bn

The naira strengthened to N1,322.50/$ at the Nigerian Foreign Exchange Market (NFEM) on Friday, extending its recent appreciation against the US dollar despite a sharp fall in weekly foreign exchange turnover.

The currency closed at N1,322.50/$ on September 4, unchanged from the previous session but stronger than the N1,335.50/$ recorded at the start of the week. That represents a gain of N13, or 0.97%, between Monday and Friday.

How the naira moved

The naira began the week at N1,335.50/$ on August 31 before strengthening to N1,329/$ on September 1 and N1,324.50/$ on September 2. It gained further to N1,322.50/$ on September 3 and held that level on September 4.

This means the naira recorded three consecutive sessions of appreciation before steadying on Friday. The week's closing rate was supported by a weighted average rate of N1,321.22/$ on September 4, while trades during the session ranged between N1,319.45/$ and N1,324/$.

The naira has also strengthened significantly from late August levels. It closed at N1,337/$ on August 28, meaning it gained N14.50, or 1.08%, against the dollar over the latest week.

FX turnover declines

Foreign exchange activity, however, declined compared with the previous week. NFEM turnover totalled about $2.14 billion between August 31 and September 3, based on reported Central Bank of Nigeria (CBN) data. This compares with approximately $3.19 billion recorded during the preceding week, representing a decline of $1.05 billion, or 33%.

The latest week's turnover comprised $228.52 million on August 31, $574.42 million on September 1, $658.46 million on September 2 and $674.38 million on September 3. No NFEM turnover was reported for Friday, September 4, as of the time of filing.

Reserves cross $54bn

The stronger naira comes amid an improvement in Nigeria's broader external position. Foreign exchange reserves crossed the $54 billion mark during the week, reaching approximately $54.08 billion on September 3.

Reserves stood at $54,083,850,797.49 on September 3, compared with $53.99 billion on September 2 and $53.90 billion on September 1. The improvement comes as Nigeria's external position continues to benefit from higher oil earnings and other foreign exchange inflows.

The latest position has now surpassed the CBN's projected reserve level of approximately $51.04 billion for the whole of 2026.

During the week, the naira strengthened to N1,329/$ on Tuesday, September 1, 2026, breaking below the N1,330/$ mark for the first time since 2024. The recent gains have strengthened Nigeria's foreign exchange buffer and provide a larger cushion against external shocks, while supporting the country's capacity to meet international obligations.