The naira firmed up against the dollar throughout last week, posting cumulative N13 to dollar gain to close at N1,322.50 per dollar at the Nigerian Foreign Exchange Market (NFEM).
The local currency closed at N1,322.50 per dollar on September 4th and 5th, a stronger position than N1,335.50 per dollar recorded at the start of the week. This represented a gain of N13 or 0.97 per cent appreciation between Monday and Friday.
Further analysis of the weekly naira performance showed that it began the week at N1,335.50 per dollar on August 31 before strengthening to N1,329 per dollar on September 1 and N1,324.50 per dollar on September 2.
FMDQ Weekly Foreign Exchange Market Analysis Report released by FMDQ at the weekend showed that in the spot and derivatives markets, the total turnover for the week-ended September 4, 2026, was $2.44 billion, representing a decrease of 21.38 per cent or $656.67 million from the $3.07 billion reported for the week-ended August 28.
The week-on-week decrease in total turnover was jointly driven by the 20.55 per cent or $606.36 million decrease in FX Spot transactions, which recorded a total value of $2.34 billion compared to $2.95 billion in the week-ended August 28. It also showed 41.59 per cent ($50.31 million) decrease in forex derivatives transactions, comprising forex forward for the week-ended September 4.
The external reserves crossed $54 billion mark last week, closing the week at $54.08 billion on September 3.
Analysis of CBN data shows that reserves stood at $54,083,850,797.49 on September 3, compared with $53.99 billion on September 2 and $53.90 billion on September 1, beating year-end target of $51.04 billion.
The surge in reserves accretion comes as Nigeria’s external position continues to benefit from higher oil earnings and other foreign exchange inflows.
The current reserves position is far higher than CBN’s projected $51.04 billion year-end target, and will cover over 12 months import for the economy.
The reserves provide the CBN with the capacity to support the local currency and meet external obligations, have continued to rise steadily.
Further analysis showed that the liquid portion of the external reserves stood at $53.55 billion.
CBN data further showed that Nigeria’s external reserves maintained a steady upward surge in recent months. The reserves started June at $49.80 billion and crossed the $50 billion mark by June 5, reaching $50.12 billion.
On June 15, reserves had increased further to $50.81 billion before rising to current position. The reserves stood at $51.9 billion on July 31, and continued. The sustained increase reflects stronger foreign exchange inflows and improved liquidity conditions in the country’s external sector.
The CBN Governor Olayemi Cardoso, said: “This strong buffer continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.” The CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, Cardoso said.
