Naira Stability: ₦1,331 Rate as Reserves Hit $54.61bn

Nigeria’s naira remained relatively close to the ₦1,300-per-dollar level on Friday, September 18, although the currency weakened slightly in the latest official market data.

The naira was quoted at about ₦1,331 to the US dollar in the Nigerian Foreign Exchange Market (NFEM), compared with ₦1,329.56 on Wednesday. In the parallel market, the dollar was reported around ₦1,375, leaving a gap of roughly ₦44 between the two rates.

The latest movement comes as Nigeria’s external reserves continue to build, providing a larger foreign-exchange buffer for the Central Bank of Nigeria (CBN).

Foreign reserves reach $54.61 billion

Nigeria’s gross external reserves increased to $54.61 billion as of September 14, 2026, according to CBN data reported by PUNCH.

That represents a $12.76 billion increase from the $41.84 billion recorded on September 15, 2025, equivalent to growth of about 30.5 percent over the period. Reserves also increased by approximately $707.75 million during the first 14 days of September.

The latest figure is above the roughly $51.04 billion year-end reserve level previously projected by the CBN.

The increase has given Nigeria a larger external liquidity buffer at a time when policymakers are attempting to maintain greater stability in the foreign-exchange market.

Naira movement remains relatively limited

Despite the recent small decline, the naira’s movement around the ₦1,300 level represents a different trading pattern from the sharp fluctuations experienced during earlier periods of foreign-exchange pressure.

On Thursday, September 17, the official reference rate was reported at ₦1,331.2812 per dollar, compared with ₦1,329.8568 on Wednesday.

The parallel market has continued to trade at a higher dollar price. Reports on Friday placed the rate at approximately ₦1,375, although parallel-market quotations can differ according to location, dealer and transaction size.

The difference between the two markets therefore remains important for businesses and individuals who require foreign currency outside formal banking channels.

What is supporting the currency?

Recent market reporting points to several factors behind the relative stability.

Reuters reported on September 17 that Nigeria’s currency was expected to remain broadly stable, citing central-bank dollar sales and relatively subdued import demand as factors supporting the outlook.

The continued accumulation of foreign reserves also provides the CBN with a larger external buffer.

However, reserves should not be treated as a guarantee that the naira will continue moving in one direction. Exchange rates can respond quickly to changes in oil prices, foreign investment flows, dollar demand, monetary policy and global financial conditions.

Foreign investment is also contributing to inflows

Nigeria’s external position has benefited from stronger foreign capital inflows.

According to data cited by PUNCH, the National Bureau of Statistics reported $10.37 billion in foreign capital inflows during the first quarter of 2026, an 83.8 percent increase from $5.64 billion in the same period of 2025.

Portfolio investment accounted for a significant portion of those inflows.

That distinction matters because portfolio funds can provide foreign-exchange liquidity but can also respond quickly to changes in interest rates, currency expectations and international financial conditions. Longer-term foreign direct investment generally behaves differently.

Global interest rates could complicate the picture

The naira is also being traded against a changing international backdrop.

The US Federal Reserve raised its benchmark interest rate by 25 basis points this week, according to current market reporting. Higher US interest rates can affect the attractiveness of dollar-denominated assets and potentially influence capital flows into emerging and frontier markets.

At the same time, global oil prices remain elevated amid geopolitical tensions. Nigeria’s position as an oil exporter means changes in crude prices can influence foreign-exchange earnings and government revenues.

Those external factors mean the naira’s recent stability should be viewed as a current market condition rather than a permanent change in the currency’s risk profile.

What the naira’s stability means for Nigerians

Exchange-rate stability matters because movements in the naira affect the local cost of goods and services with foreign-currency components.

Importers, manufacturers that purchase overseas inputs, airlines, technology companies, international students and businesses with dollar-denominated obligations can all be affected by exchange-rate changes.

A relatively stable currency makes it easier for businesses to plan their naira costs, although it does not automatically mean prices will fall.

For consumers, the effect can take longer to appear because businesses may still be working through inventory purchased at previous exchange rates.

The official and parallel markets remain different

The continuing gap between the official and parallel markets is another part of the picture.

On Friday, the official rate was around ₦1,331 while the reported parallel-market rate was about ₦1,375. That produced a difference of approximately ₦44 per dollar.

The gap is considerably narrower than during periods of severe foreign-exchange dislocation, but it has not disappeared.

The two rates also serve different purposes, and parallel-market prices can change during the day depending on available dollar supply and demand.

What to watch next

The main issues for the naira in the coming weeks will include foreign-exchange liquidity, reserve accumulation, dollar demand, capital inflows, oil prices and CBN policy.

The central bank’s monetary-policy decisions will also be closely watched. Bank of America expects the CBN could resume interest-rate cuts at its September meeting, according to a report published Friday, citing moderating inflation and the naira’s relative stability. That remains an expectation rather than a confirmed CBN decision.

For now, the latest data show a naira trading around ₦1,331 per dollar in the official market alongside a substantial improvement in Nigeria’s foreign-reserve position.

The next test will be whether those stronger external buffers and current market conditions can continue to support relatively contained exchange-rate movements as domestic and global financial conditions change.