The Nigerian currency has remained strong in the official and parallel markets, driven by inflows into the FX markets
The local currency closed positively last week and resumed strongly against the dollar and major global currencies
The exchange rate improved from N1,514.8671 in the first week of September due to enough liquidity in the currency market.
The naira’s rebound is propelled by Nigeria’s surging reserves, which have risen to $41.5 billion, from $41.44 billion
On Monday, September 8, 2025, the naira strengthened to N1,506 per dollar in the official window The development also comes as Nigeria’s foreign reserves rose to $41.5 billion from $41.44 billion.
According to data from the Central Bank of Nigeria (CBN), the dollar spot rate settled at N1,506.8433 per dollar at the official window as demand pressure thinned.
Experts have predicted that the naira will remain relatively strong in the global currency market amid broader pressures on the US currency.
According to a report by Market Forces Africa, the Nigerian currency appreciated by N16.70 to close at N1,514 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) last week.
“We are noticing renewed confidence in the Nigerian economy as investors look for safe havens for investment,” Janet Ogochukwu, senior banker and economist, said.
She said that in the near term, the naira will remain steady, given the robust reserves and inflows from different sources.
In the parallel segment of the FX market, the naira exchanged for N1,540 per dollar.
Amid the naira’s surge, total FX inflows stood at $567.2 million, less than $706.7 million in the week before.
Foreign Portfolio Investment (FPIs) led with the highest inflows, accounting for $184.1 million, representing 32.5% of the overall inflows.
Analysts at Coronation Merchant Bank said that the apex bank intervened in the FX market with $173 million, representing 30.5% inflows.
Data showed that inflows from banks and non-corporate accounted for 16.6% and 16.2%, respectively, while others accounted for 4.3%.
Nigeria’s gross external reserves hit $41.499 billion over sustained inflows across foreign sources, including oil revenue, despite price fluctuations in the global commodity market.
