The naira appreciated by 31 kobo against the US dollar at the official Nigerian Foreign Exchange Market (NAFEM) on Tuesday, September 8, 2026, closing at N1,320.25/$1 compared with N1,320.56/$1 in the previous session. This represents a gain of 0.02% for the local currency.
According to data from the Central Bank of Nigeria (CBN), the naira's marginal improvement came as Nigeria's gross foreign exchange reserves crossed the $54 billion mark for the first time since December 2008. Gross reserves stood at $54.08 billion as of September 3, 2026, having grown by approximately $8.6 billion since the beginning of the year.
Mixed Performance Against Major Currencies
While the naira gained ground against the dollar, it slipped against the British pound sterling, falling by N1.69 to close at N1,789.86/£1, down from N1,788.17/£1 in the prior session. The naira, however, appreciated by 89 kobo against the euro, ending the day at N1,534.52/€1.
Outside the official window, rates remained stable. The naira traded at N1,330/$1 at the GTBank forex counter and held steady at N1,375/$1 in the parallel market, according to market data.
Analysts See Short-Term Stability
Market analysts said the local currency is expected to remain broadly stable in the near term, citing the recovery in Nigeria's external reserves and relatively contained exchange-rate pressure as key supporting factors. The strengthening reserves have enhanced the CBN's capacity to manage foreign exchange demand and bolster market confidence.
Analysts at Coronation projected that the NAFEM exchange rate would trade within the N1,300 to N1,350/$1 band. They cautioned, however, that a sharp drop in oil prices, a deterioration in global risk appetite, or other adverse external shocks could put the naira under renewed pressure.
Official Rates Across Selected Currencies
The following is a snapshot of how the naira performed against selected currencies in the NAFEM market on Tuesday, September 8, 2026:
- CFA: N2.34
- Yuan/Renminbi: N196.74
- Danish krone: N205.27
- Euro: N1,534.52
- Yen: N8.58
- Riyal: N351.58
- South African rand: N82.52
- SDR: N1,812.26
- Swiss franc: N1,630.94
- Pound sterling: N1,789.86
- US dollar: N1,320.25
- WAUA: N1,810.97
Business Outlook Remains Positive
Earlier reports indicated that Nigerian businesses expect the naira to gradually gain ground against the US dollar between now and January 2027, according to the CBN's July 2026 Business Expectations Survey. The apex bank reported that the overall Business Confidence Index (BCI) stood at 5.7 points in July 2026, reflecting continued positive sentiment among formal businesses despite ongoing macroeconomic pressures. The survey highlighted three factors that dominated businesses' reasons for optimism, though specific details were not disclosed in the report.
