The domestic currency has enjoyed a solid start to September, appreciating from ₦1,526.09/$ at the beginning of the month to last Thursday’s close. The last time the naira traded below the ₦1,515/$ mark was on March 6, when it settled at ₦1,512.30/$.

At the parallel market, the naira also gained ground, strengthening slightly to ₦1,538/$, representing a 0.02 per cent appreciation.

Liquidity and Dollar Inflows Boost Confidence

Market analysts attribute the naira’s performance to improved liquidity and sustained dollar inflows, bolstered by CBN interventions estimated at around $15bn.

In its weekly review, AIICO Capital reported that the FX market opened the week on a calm note, with balanced flows keeping rates stable around ₦1,527–₦1,533/$. By mid-week, offshore supply and opportunistic buying lifted sentiment, with the NAFEX fixing improving to ₦1,528.13/$. The naira eventually sustained gains, trading between ₦1,508/$ and ₦1,529/$ before closing at ₦1,514.87/$.

Similarly, Cowry Asset Management projected relative stability in the coming week, citing dollar inflows and a modest build-up in external reserves as key supports. However, it warned that speculative demand and global oil price volatility could limit further appreciation.

Reserves Edge Higher

Nigeria’s external reserves rose 0.10 per cent week-on-week, climbing from $41.27bn to $41.31bn. Analysts noted that the uptick provides an important buffer against external shocks, such as fluctuating oil prices and currency pressures, while giving the CBN greater capacity to intervene when necessary.

Outlook: Stable but Cautious

Overall, experts expect the naira to remain stable in the near term, supported by steady foreign inflows and improved FX liquidity. However, global oil market dynamics — particularly the outcome of the upcoming OPEC+ meeting — will remain a key factor influencing Nigeria’s external earnings and, by extension, FX market performance.