By Boluwatife Oshadiya | August 28, 2026
Key Points
- Naira appreciates to ₦1,338.58 per dollar at the Nigerian Foreign Exchange Market on Thursday
- FX turnover falls 19% to about $191.6 million as deal count declines to 176
- Gross external reserves rise by about $185.25 million to $53.30 billion
Main Story
The naira strengthened at the Nigerian Foreign Exchange Market (NFEM) on Thursday, closing at ₦1,338.58 per dollar as improved foreign exchange liquidity supported the local currency.
The naira appreciated by 0.37% from ₦1,343.59/$ recorded in the previous trading session, according to market data reported from the Central Bank of Nigeria (CBN). Transactions were conducted between ₦1,335 and ₦1,345 per dollar during the session.
Market activity, however, weakened as NFEM turnover fell 19% from about $235.99 million to $191.59 million, while the number of deals declined from 213 to 176.
The improvement in the official exchange rate comes amid stronger dollar liquidity, with foreign portfolio investors, exporters and non-bank corporates identified as important sources of foreign exchange supply. The CBN and other market participants have also continued to provide intermittent support to market liquidity.
The naira also strengthened against other major currencies. It appreciated by 0.41% against the pound to about ₦1,819.66 and gained 0.38% against the euro to approximately ₦1,559.53.
In the parallel market, however, pressure remained, with the dollar quoted around ₦1,405 and the euro around ₦1,600, according to market reports.
Nigeria’s external reserves also continued to build, rising by about $185.25 million to $53.30 billion. The stronger reserve position provides additional support for the country’s external liquidity buffer.
What’s Being Said
AIICO Capital said the naira’s recent stability has been supported by improving foreign exchange liquidity, although persistent demand and the gap between official and parallel-market rates remain factors that could limit further gains.
Market data also indicate that the official-parallel market gap remains significant, despite the recent appreciation at the NFEM window.
What’s Next
- Continued FX supply from exporters, foreign portfolio investors and other market participants will remain important to the naira’s near-term direction
- The CBN’s daily FX market operations and reserve position will be closely watched for signals on liquidity conditions
- The official-parallel market spread remains a key indicator of underlying dollar demand
Bottom Line:
The naira’s latest appreciation points to improving conditions in the official FX market, but the weaker turnover and continued parallel-market premium show that liquidity improvement has not eliminated underlying demand pressure.
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