Naira Strengthens Across Markets in First Week of September

The Nigerian naira recorded gains in both the official and parallel markets during the opening week of September 2025, marking a rare period of stability for the currency.

At the parallel market, the naira opened trading at about ₦1,539 per dollar on Monday, September 1, and appreciated modestly through the week to close at ₦1,535/$1 by Thursday.

The official foreign exchange window reflected an even stronger performance, with the rate improving from ₦1,527.90/$1 at the start of the week to ₦1,511.50/$1 by September 4.

The appreciation built on a steadier close to August, when the naira had hovered between ₦1,543 and ₦1,545 in the parallel market, and around ₦1,531 at the official window.

In comparison, earlier in August, the naira had been much weaker, trading between ₦1,550 and ₦1,570 at the unofficial market.

Market analysts linked the recent strengthening to a combination of factors. Chief among them was the surge in diaspora remittances, which reportedly climbed by as much as 200% to reach $600 million within two months.

This boost in inflows helped ease pressure on foreign exchange supply. Nigeria’s external reserves, which rose to around $41.3 billion, also provided the Central Bank of Nigeria with more room to defend the naira.

In addition, the recent currency swap arrangement with Chinese traders allowed transactions to be settled directly in naira, reducing demand for the U.S. dollar and supporting exchange rate stability.

The stronger currency comes as a relief to businesses and consumers, as it helps cushion import costs and may ease some inflationary pressures.

Economists, however, caution that sustaining the momentum will depend on broader fiscal discipline, continued inflows, and effective management of the forex market.

For now, the naira’s performance in early September has been welcomed as a positive sign, especially after months of volatility that unsettled investors and traders.