This recent appreciation continues a broader trend of stability seen since the start of 2026, marking a significant departure from the volatility that characterized much of 2024 and 2025.

Industry analysts attribute this resilient performance to several strategic factors, including the Central Bank of Nigeria’s (CBN) tighter monetary coordination and improved liquidity from domestic energy production.

Key Drivers of the Naira’s Momentum

• Refinery Impact: The ramp-up of the 650,000-bpd Dangote Refinery has begun to significantly reduce the demand for foreign exchange typically used for petroleum imports, providing a much-needed buffer for the local currency.
• Monetary Policy: Interest rates held at elevated levels, hovering around 27%, have continued to attract foreign portfolio inflows, further boosting FX reserves which are now nearing the $50 billion
• Predictability over Level: Financial leaders, including Tony Elumelu, have noted that this newfound predictability is more critical than the absolute exchange rate, as it allows corporate entities to resume long-term investment plans that were previously shelved.

Impact on Nigeria’s Wealthiest

The combination of a stronger currency and a bullish stock market has significantly boosted the dollar value of domestic assets.

The Lagos Stock Exchange recently hit a historic milestone, with market capitalization nearing ₦125 trillion.

Aliko Dangote’s fortune has surged by over $1.8 billion since January, largely due to the appreciation of his naira-denominated assets.

BUA Foods, under Abdul Samad Rabiu, has emerged as the most valuable listed company on the exchange, with a valuation exceeding ₦15 trillion.

Outlook: Can the Gains Last?

While some market observers, including Femi Otedola, have suggested the Naira could potentially strengthen below the ₦1,000 mark by year-end, most analysts remain cautiously optimistic.

The focus remains on whether these gains are driven by sustainable productivity growth or short-term capital flows.

For the Techeconomy community, this stability is a vital signal for the digital infrastructure and tech sectors, where imported equipment and cloud service costs are heavily dependent on exchange rate predictability.

Data from the Nigerian Foreign Exchange Market (NAFEM) showed that the naira traded within a band of N1,528/$1 to N1,541/$1 during the day before settling at its final rate.

The continued decline is largely attributed to sustained demand for foreign exchange, which has kept pressure on the local currency.

Interestingly, the naira recorded slight gains in the parallel market, where it closed at N1,550/$1, an improvement from N1,565/$1 on Tuesday.

The positive momentum extended to other foreign currencies: it appreciated by 0.50% against the British pound to close at N1,990/£1, up from N2,000/£1, and gained 0.60% against the euro, ending at N1,660/€1, compared to N1,670/€1 the previous day.

Despite its official market depreciation, analysts say the naira is showing signs of resilience. Last week’s brief period of relative stability suggests ongoing efforts to curb volatility amid persistent FX demand.

Market watchers expect the Central Bank of Nigeria (CBN) to continue interventions aimed at stabilizing the currency, particularly as structural reforms and liquidity measures begin to take shape.

This is a 0.58% drop from the week’s opening price of ₦1,528.03/$1 and a 1.25% decline on a week-on-week basis.

Although the naira started the week on a bad note, erasing the profits recorded the previous Friday, it managed to stabilise midweek, closing at nearly the same rate on Wednesday and Thursday.

However, the currency lost ground on Friday, reversing all its weekly gains to settle at ₦1,536.89/$1.

Data from the Nigerian Foreign Exchange Market (NAFEM) showed that the naira traded within a range of ₦1,540/$1 (high) and ₦1,535/$1 (low) during Friday’s session.

Despite its depreciation in the official market, the naira held steady in the parallel market, maintaining ₦1,580/$1, the same as Thursday’s rate.

However, against the British pound, it declined by 0.25% to ₦2,015/£1 from ₦2,010/£1. Similarly, it weakened by 0.30% against the euro, dropping to ₦1,685/€1 from ₦1,680/€1.

The currency had started the week on a downward trend, closing at N1,528.03/$1 on Monday after erasing Friday’s profits. It then weakened further on Tuesday before making a slight recovery on Wednesday.

Trading in the Nigerian Foreign Exchange Market (NAFEM) saw high demand pressure, prompting the Central Bank of Nigeria (CBN) to intervene by selling $38.65 million at rates between N1,500/$1 and N1,525/$1 to stabilise the market.

In the parallel market, the naira gained 0.31% against the dollar, closing at N1,575/$1, up from N1,580/$1 on Tuesday. However, it weakened against other currencies, falling 0.24% against the British pound to N2,015/£1 and dropping 0.29% against the euro to N1,675/€1.

The CBN’s intervention helped stabilise the naira, and analysts expect the apex bank to maintain its support in the coming days.

This downturn comes after the naira closed on a positive note last week, recovering earlier losses. However, the currency could not sustain the momentum, reversing the previous session’s profit.

During Monday’s trading session, the exchange rate fluctuated between N1,552/$1 at its highest and N1,512/$1 at its lowest, according to data from the Nigerian Foreign Exchange Market (NAFEM).

In the parallel market, however, the naira gained ground by 0.63%, appreciating N1,575/$1 from Friday’s rate of N1,585/$1.

Conversely, the naira depreciated against the British pound, dropping 0.75% to N2,000/£1 from N1,985/£1, and also weakened slightly against the euro, falling 0.30% to N1,660/€1 from N1,655/€1.

Despite the Central Bank of Nigeria (CBN) intervention, NAFEM experienced strong demand pressure today, contributing to the naira’s drastic decline against the dollar in the foreign exchange market.

This was disclosed in the currency exchange data provided by the Nigerian Foreign Exchange Market (NFEM).

Despite the Central Bank of Nigeria (CBN) injecting over $164.95 million at rates between N1,543.09/$1 and N1,556/$1, the currency continued to decline.

AIICO Capital Limited confirmed this intervention, but it was naira

enough to stop the depreciation.

In the parallel market, the naira also lost ground, slipping by 0.32% to N1,585/$1 from N1,580 recorded a day earlier. During trading hours, it fluctuated between a high of N1,570/$1 and a low of N1,543/$1.

Against other major currencies, the naira weakened further, dropping 0.25% to N1,990 per British pound from N1,985/£1, while the euro surged by 0.61% to N1,660/€1 from N1,550 the previous day.

The continuous fall in the naira’s value is driven by strong demand for the dollar and other foreign currencies. Despite the CBN’s interventions, the currency has now declined for seven consecutive days.

Analysts believe the central bank will continue working to stabilise the naira, but the outlook seems challenging.

This marks six consecutive days of decline without a comeback, drawing attention to the unpleasant impact on businesses and consumers.

In the parallel market, the naira traded at N1,580/$1, down 0.35% from N1,575/$1 the previous day. This increased the gap between the official and parallel markets to N42 per dollar.

Data from the Central Bank of Nigeria (CBN) showed that the naira traded between N1,532 and N1,550 per dollar during the day, reflecting an N18/$1 spread.

The naira also lost value against other currencies in the parallel market. It fell to N1,985 per British pound, a 0.25% decline from Tuesday’s N1,980/£1. Against the euro, it dropped by 0.91%, trading at N1,650/€1 compared to N1,635/€1 the day before.

Though the Central Bank of Nigeria (CBN) has been taking various measures to stabilise the currency, the naira is still pulled back by pressure from foreign exchange demands.

With pressure increasing on local currency, the decline is a slight depreciation from N1,505/$1 recorded on Wednesday, as liquidity challenges continue.

In the parallel market, the naira weakened further, trading at N1,550/$1, a 2.31% decline from N1,515/$1 the previous day.

The gap between official and unofficial exchange rates shows the extent of supply-demand imbalances.

Data from the Nigerian Foreign Exchange Market (NAFEM) also revealed a 0.88% drop in the weekly exchange rate, with the dollar now quoted at N1,512.30/$1, compared to N1,498.98/$1 earlier in the week.

Intraday trading fluctuations saw the currency reaching a high of N1,520/$1 and a low of N1,505/$1 within the official window.

In addition, the naira struggled against other currencies, shedding 0.63% against the euro, slipping from ₦1,570/€1 on Wednesday to ₦1,580/€1. Similarly, it declined against the British pound, losing 0.53% to close at ₦1,870/£1, down from ₦1,860/£1.

The continued depreciation of the naira results from economic challenges, with analysts pointing to dollar shortages and speculative activities as drivers of market instability.

With pressure increasing on local currency, the decline is a slight depreciation from N1,502/$1 recorded on Tuesday, as liquidity challenges continue.

In the parallel market, the naira weakened further, trading at N1,515/$1, a 0.66% decline from N1,505/$1 the previous day.

The gap between official and unofficial exchange rates shows the extent of supply-demand imbalances.

Data from the Nigerian Foreign Exchange Market (NAFEM) also revealed a 0.13% drop in the weekly exchange rate, with the dollar now quoted at N1,500.80/$1, compared to N1,498.98/$1 earlier in the week.

Intraday trading fluctuations saw the currency reaching a high of N1,505/$1 and a low of N1,497/$1 within the official window.

Currency movements against other foreign denominations were mixed. The naira lost 1.61% against the euro, slipping from ₦1,540/€1 on Tuesday to ₦1,570/€1. However, it recorded gains against the British pound, strengthening 1.58% to close at ₦1,860/£1, up from ₦1,890/£1.

The continued depreciation of the naira results from economic challenges, with analysts pointing to dollar shortages and speculative activities as drivers of market instability.

The downward slide of the local currency worsened yesterday, Thursday, September 5, 2024.

The figure yesterday indicated a whooping loss of N34 after the dollar exchanged for N1,606 the previous day, according to the Nigerian Autonomous Foreign Exchange Market (NAFEM) rate.

Also the black market rate also dipped yesterday as the naira lost N5 against the dollar, exchanging at N1,645/$1, as against N1,640 the previous day.