Naira gains to N1,329/$, strongest level in over two years

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The naira closed at N1,329 per dollar on Tuesday, September 1, 2026, its strongest level in more than two years, according to Central Bank of Nigeria data.

The latest official rate represents a gain of N6.50 from the N1,335.50/$ recorded at the close of trading on Monday. It is the first time the naira has traded below N1,330/$ since May 29, 2024, when it closed at N1,329.65/$.

Steady recovery since mid-August

The naira has been on a steady recovery since the middle of August. It moved from N1,358.25/$ on August 14 to N1,349.99/$ on August 24. It later strengthened to N1,343/$ on August 26, N1,337/$ on August 28 and N1,335.50/$ on August 31.

Between August 14 and September 1, the naira gained N29.25, or about 2.15 per cent.

The currency also gained in the parallel market, trading at N1,375/$ compared with N1,380/$ the previous day. At the GTBank foreign exchange desk, the naira closed at N1,343/$ after gaining N3.

Against other major currencies, the naira recorded gains. It strengthened by N5.42 against the British pound to close at N1,800.18 per pound, and gained N3.80 against the euro to close at N1,542.01.

Foreign exchange turnover rises

Trading activity in the foreign exchange market increased significantly on Tuesday. The naira traded between N1,327 and N1,335.50/$ during the session, with a weighted average rate of N1,329.43/$.

Total foreign exchange turnover rose by 30.8 per cent to $139.45 million from $106.64 million recorded on Monday. The number of deals also increased from 118 to 139.

External reserves up

The stronger naira came as Nigeria's external reserves continued to rise. The country's external reserves stood at $53.8 billion as of August 31, 2026, compared with $45.57 billion at the beginning of the year.

For businesses and consumers, improved FX liquidity and rising reserves could support a more stable exchange rate outlook in the coming weeks.

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