The naira appreciated by 1.9 per cent against the United States dollar in September 2026, as the average exchange rate declined to N1,328.28 per dollar from N1,353.41 recorded in August.
The improvement reflects continued stability in Nigeria’s official foreign exchange market, supported by increased foreign capital inflows, higher crude oil prices and rising external reserves.
Data published by the Central Bank of Nigeria (CBN) showed that the naira’s average exchange rate strengthened by approximately N25.13 during the month, representing a 1.9 per cent appreciation.
The local currency also recorded gains in the parallel market, where it appreciated by 1.8 per cent month-on-month to N1,380 per dollar in September.
The development indicates an improvement in the naira’s performance across both the official and parallel foreign exchange markets, although a gap between the two rates remained.
Nigeria’s foreign exchange market has benefited from foreign investor participation and diaspora remittances, which contribute to the supply of foreign currency.
Higher crude oil prices have also supported the outlook for foreign exchange earnings, given the importance of oil exports to Nigeria’s external revenue.
The naira’s performance comes amid global economic uncertainty and geopolitical tensions in the Middle East, which have contributed to volatility in international financial markets.
Despite the September gains, the currency’s continued stability will depend partly on sustained foreign exchange inflows, adequate market liquidity and developments in the global oil market.
The naira’s improvement offers some relief to the foreign exchange market, although its broader impact on import costs, inflation and the purchasing power of Nigerians will depend on how exchange-rate gains translate into prices in the domestic economy.
