Naira strengthens to N1,346.90/$ as weekly FX turnover doubles to $4.5 billion in one week

The Nigerian currency, the naira, experienced a notable strengthening against the US dollar this week. According to the Nigerian Foreign Exchange Market (NAFEM), the naira closed at N1,346.90/$ on Friday, marking an increase of 0.84% from N1,358.25/$ recorded on August 14. This significant improvement in the naira's value comes as foreign exchange activity surged, with NAFEM transactions reaching approximately $4.52 billion between Monday and Friday, a substantial 107.6% increase from the $2.18 billion weekly turnover recorded the previous week of August 10–14.

Analysts noted that this sharp rebound in NAFEM turnover suggests enhanced liquidity and heightened involvement in the official foreign exchange market. However, they cautioned that the surge may have been driven by a few large transactions involving major corporate users of foreign exchange, such as importers of raw materials, machinery, and other inputs.

Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), explained that a small number of large transactions can significantly impact daily and weekly turnover figures, and thus should not be interpreted as a sustained shift in market conditions.

This strengthening in the naira follows broader improvements in Nigeria's external position. Earlier reports indicated that the country's external reserves had risen to $52.02 billion on July 20, 2026, marking the highest level since January 2009. This advancement in Nigeria's external reserves was attributed to stronger oil earnings, reforms in the foreign exchange market, and improved external inflows.