By Kehinde Victor | September 24, 2026
Key Points
- The naira closed at ₦1,328.50 per dollar at the Nigerian Foreign Exchange Market, down 0.05%
- The parallel-market rate weakened 0.51% to ₦1,387, widening the gap between the two markets to ₦59
- External reserves remained above $54 billion while Brent crude rose above $102 a barrel amid Middle East supply concerns
Main Story
The naira weakened against the US dollar across Nigeria’s major foreign-exchange markets on Wednesday as the currency adjusted after the CBN’s 350-basis-point reduction in its policy rate.
The local currency closed at ₦1,328.50/$ at the Nigerian Foreign Exchange Market, a 0.05% decline from the previous session, according to CBN-linked market data. In the parallel market, the naira fell 0.51% to ₦1,387/$, widening the gap between the two rates to ₦59 from ₦52.
The naira nevertheless strengthened against the pound and euro at the official window, with rates at ₦1,762.92/£ and ₦1,514.89/€, respectively.
The move came a day after the CBN reset its MPR to 23% from 26.5%. Governor Olayemi Cardoso said the adjustment was aimed at improving the transmission of monetary policy after the previous benchmark had become disconnected from prevailing market rates.
External-market conditions added another layer of pressure. AIICO Capital reported Brent crude at $102.54 a barrel, up 2.16%, while gold fell 0.84% to $4,327.15 an ounce as expectations of renewed US-Iran talks reduced demand for the traditional safe-haven asset.
The Issues
The latest movement illustrates the competing forces facing the naira after the CBN’s policy reset. Stronger external reserves and elevated oil prices provide support for Nigeria’s foreign-exchange position, but changes in interest-rate differentials and dollar demand can still produce short-term pressure.
The official-parallel market spread is also an important indicator. The ₦59 difference recorded on Wednesday was wider than the previous day’s ₦52 gap, suggesting that pricing conditions were less uniform across the two segments.
Nigeria’s latest headline inflation rate was 15.39% in August, while the CBN’s September MPC communiqué said gross external reserves stood at $55.25 billion on September 18.
What’s Being Said
“We are of the firm opinion that our transmission mechanism is not working as effectively as it should,” said Olayemi Cardoso, Governor, Central Bank of Nigeria, while explaining the rationale for the policy reset.
AIICO Capital’s September 23 market report recorded a 0.05% decline in the naira at NAFEM and a 0.51% decline in the parallel market, while noting that reserves remained around $55.25 billion.
What’s Next
- Traders will monitor whether the ₦59 official-parallel market gap narrows or widens in subsequent sessions
- The naira’s performance will remain sensitive to dollar demand, domestic liquidity conditions and global oil prices
- Investors will also assess how the new 23% MPR affects foreign portfolio flows and the relative attractiveness of naira-denominated assets
Bottom Line
The Bottom Line: The naira’s Wednesday decline shows that the CBN’s rate reset does not remove short-term FX pressures, even with stronger external reserves and elevated oil prices. The size and persistence of the official-parallel market gap will remain an important indicator of underlying dollar liquidity conditions.
