Naira Opens September Strong, Hits Six-Week High at ₦1,526/$

The naira began the month of September on a positive note, appreciating against the U.S. dollar at both the official and parallel markets on Monday.

Figures from the Nigerian Foreign Exchange Market (NAFEM) showed that the local currency strengthened by 0.36 per cent, or ₦5.48, to close at ₦1,526.09 per dollar compared to ₦1,531.57/$ recorded at the previous trading session. This marks the strongest performance of the naira in about six weeks, according to data published on the Central Bank of Nigeria (CBN) website.

The gains were also reflected at the parallel market, where Cardinal Stone Research reported that the naira appreciated by 1.22 per cent to close at ₦1,527.33/$, narrowing the gap between the official and unofficial exchange rates. Analysts noted that the convergence reduced speculative activity that had pressured the currency in recent weeks.

Market experts say the rally in the naira was in line with expectations for early September. In its weekly outlook, Cowry Assets Management projected that the local currency would remain relatively stable at the official window, buoyed by CBN interventions and modest foreign exchange inflows.

However, the analysts cautioned that “rising demand and a stronger U.S. dollar could limit further gains,” underscoring the fragile balance in Nigeria’s FX market.

The naira’s latest performance comes as the federal government intensifies efforts to attract foreign investment and improve dollar supply, while also implementing measures to restore confidence in the foreign exchange regime.