The naira strengthened in September as improved foreign exchange liquidity, stronger oil receipts and growing market confidence supported the currency.
The naira closed September at N1,329.16 per dollar on 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 remained relatively stable at the start of October, trading at N1,331.69 per dollar on Monday compared with N1,330.09 on the previous trading day.
In the parallel market, the naira strengthened to around N1,360 per dollar from N1,380 previously. This narrowed the gap between the official and parallel market rates to N29, or 2.18 percent.
Reserves climb to $54.9bn
Nigeria’s foreign exchange reserves continued their upward trend, reaching about $54.9 billion by the end of September.
Data from the Central Bank of Nigeria showed reserves at $54.91 billion on September 30, up from $53.81 billion at the end of August.
The latest reserve position represents a significant improvement from the same period in 2025 and strengthens the country’s external buffer, giving monetary authorities greater capacity to support the naira and meet external obligations.
The rise in reserves has been supported by stronger foreign exchange inflows, including oil receipts, while increased confidence in the FX market has also helped improve currency stability.
Oil prices support external position
Nigeria’s external position also benefited from higher crude oil prices during September.
Brent crude averaged about $99.95 per barrel during the month, supported partly by geopolitical tensions that raised concerns about global oil supply.
The country also recorded a stronger current account position in the second quarter of 2026, with the surplus rising to $7.54 billion.
Nigeria’s trade surplus increased from $5.45 billion in the first quarter to $9.22 billion in the second quarter, while remittance inflows also rose from $5.28 billion to $5.49 billion.
The combination of stronger oil-related inflows, higher remittances and improved FX market conditions has helped strengthen Nigeria’s external buffers and reduce pressure on the naira.
SEO Title: Naira Strengthens as Nigeria’s Reserves Hit $54.9bn
Meta Description: Nigeria’s naira gained in September as stronger oil receipts, improved FX liquidity and rising reserves supported the currency.
