The naira opened September on a stronger footing, gaining N8.21 against the United States dollar in the official foreign exchange market within the first four trading days of the month.
The local currency closed trading at N1,321.22 per dollar on Friday, September 4, 2026, compared with N1,329.43/$ at the beginning of the month, according to data from the Central Bank of Nigeria (CBN).
The movement represents a 0.62 per cent appreciation in the value of the naira against the dollar during the period under review, pointing to continued relative stability in the official foreign exchange market.
The gain also extends a period of improved performance for the domestic currency as dollar liquidity conditions and foreign exchange market dynamics continue to influence exchange-rate movements.
Parallel market remains unchanged
While the naira strengthened in the official market, the currency recorded no movement in the parallel foreign exchange market during the same period.
Multiple Bureau de Change operators in Wuse Zone 4, Abuja, quoted the dollar at around N1,400 throughout the period under review.
The difference between the official and parallel-market rates stood at approximately N78.78 per dollar at the close of trading on Friday.
The relatively stable parallel-market rate, despite the naira's appreciation in the official market, suggests that developments in the two segments of the foreign exchange market are not moving in complete tandem.
Foreign reserves rise
The naira's early-September appreciation coincided with an increase in Nigeria's foreign exchange reserves.
The country's external reserves rose to $54.08 billion as of September 3, 2026, from $53.81 billion recorded in the previous month.
The increase of approximately $270 million provides additional foreign exchange backing for the economy and comes at a time when market participants continue to monitor the country's external liquidity position closely.
Higher reserves can provide the Central Bank with greater capacity to manage foreign exchange liquidity and respond to periods of heightened demand for dollars, although the movement of the naira is also influenced by broader market forces, including demand and supply conditions.
Market watches naira trajectory
The naira's performance during the opening week of September will likely be closely watched by businesses, investors and consumers as they assess whether the recent stability in the official market can be sustained.
A stronger naira can reduce the local-currency cost of imported goods and foreign-denominated obligations, while also easing some of the pressure on businesses that depend heavily on imported inputs.
However, sustained currency stability will depend on the availability of foreign exchange, demand pressures and developments in Nigeria's external accounts.
For now, the combination of a stronger official exchange rate and rising foreign reserves provides a positive start to September for the domestic currency, even as the parallel market remains at N1,400 per dollar.