The naira strengthened in September as improved foreign exchange liquidity, stronger oil receipts and rising market confidence supported the local currency.
The naira closed September at N1,329.16 per dollar at the Nigerian Foreign Exchange Market (NFEM), compared with N1,332.94 at the end of August, representing a 0.28 percent appreciation.
The currency also strengthened in the parallel market, where it closed at N1,360 per dollar on Monday, compared with N1,380 previously. This narrowed the gap between the official and parallel-market rates to N29, or 2.18 percent.
Nigeria’s external reserves continued their upward trend, reaching $54.95 billion as of October 2, 2026. The figure represents a 29.57 percent increase from the $42.41 billion recorded during the corresponding period of 2025.
Stronger oil receipts support reserves
The country’s reserves rose to $54.92 billion in September from $53.81 billion in August, representing a 2.07 percent increase.
The stronger external position was supported by increased oil receipts and improved foreign exchange inflows. Higher crude prices also provided additional support, with average Brent crude rising 14.43 percent during September to $99.95 per barrel.
Nigeria’s current account surplus also strengthened, increasing to $7.54 billion in the second quarter of 2026 from earlier projections of $6.12 billion.
The country’s trade surplus rose from $5.45 billion in the first quarter to $9.22 billion in the second quarter, while remittances increased from $5.28 billion to $5.49 billion over the same period.
FX market conditions improve
The stronger reserve position has provided a larger foreign exchange buffer as the Central Bank of Nigeria continues to manage the currency market.
The narrowing difference between official and parallel-market rates also points to improving convergence between the two markets.
Coronation Merchant Bank analysts said the smaller premium indicates improved convergence and relatively contained near-term foreign exchange pressures.
However, activity in the interbank foreign exchange market moderated, with total turnover falling 53.17 percent to $72.12 million on Monday from $154.02 million on Friday.
The naira’s recent performance comes amid broader improvements in Nigeria’s external position. Foreign exchange reserves had already climbed above $54 billion by September, with CBN data showing a sustained accumulation throughout 2026.
Outlook for the naira
The continued rise in reserves gives Nigeria a stronger external liquidity position and provides the monetary authorities with greater capacity to manage foreign exchange pressures.
The key focus for the currency market will now be whether stronger oil earnings, rising reserves and improved FX liquidity can sustain the naira’s recent gains while keeping the official and parallel markets increasingly aligned.
SEO title: Naira Gains as Reserves Hit $54.9bn on Stronger Oil Receipts
Meta description: The naira gained 0.28% in September as Nigeria’s reserves climbed to $54.9bn, supported by stronger oil receipts and improved FX liquidity.
