The Nigerian naira weakened against the US dollar at the official foreign exchange market on Wednesday, September 9, 2026, as renewed demand for the greenback interrupted its recent rally. Data from the Central Bank of Nigeria (CBN) showed that the naira depreciated to N1,329.21 per dollar at the Nigerian Foreign Exchange Market (NFEM), compared with N1,320.25 recorded on Tuesday.
The official exchange rate represents a decline of about N8.97 against the dollar in one trading session. Market participants attributed the naira's decline partly to a shortage of dollar supply as demand for foreign currency increased.
Dollar Supply Shortfall Hits Market
FX traders at Broadstreet told MarketForces Africa that the market experienced a US dollar shortfall on the supply side, putting renewed pressure on the naira. During the trading session on Wednesday, September 9, 2026, the dollar was quoted between N1,321.50 and N1,334 at the NFEM window, showing continued volatility in the market.
The latest movement comes after the naira recorded strong gains against the dollar over the past week, supported by increased foreign exchange inflows and reduced demand pressures.
FX Turnover Jumps 70% Amid Naira's Fall
Activity at the official market also increased significantly on Wednesday. Interbank foreign exchange turnover climbed to $94.43 million from $55.60 million recorded the previous day, representing an increase of about 70%. The number of interbank FX transactions also rose sharply, increasing from 58 deals on Tuesday to 86 deals on Wednesday.
The higher transaction volume suggests stronger activity among financial institutions as market participants respond to changing dollar supply and demand conditions.
Dollar Reserves Rise as Oil Prices Surge
Nigeria's gross external reserves also continued to strengthen, rising to $54.283 billion from $54.208 billion. The increase reflects continued additions to the country's foreign exchange reserves from various sources. Some analysts believe Nigeria's reserves could cross the $55 billion mark within weeks if the current momentum continues, particularly as elevated international oil prices provide additional support.
Global oil prices surged above $100 per barrel on Wednesday for the first time since July following attacks on oil facilities and ships in the Middle East, raising concerns about disruptions to global crude supply. Brent crude, the international benchmark, rose nearly 3% to $100.72 per barrel, while US benchmark crude gained 2.4% to $95.25.
Legit.ng earlier reported that Nigeria's external reserves crossed a significant milestone last week, hitting $52.25 billion, the highest level recorded in 17 years — as the naira held steady across both official and parallel foreign exchange markets. Figures from the Central Bank of Nigeria (CBN) showed that the naira appreciated by N8.08 against the dollar over the course of the week, closing at N1,357.61 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Friday.
