Naira Opens Week Stronger as Dollar Trades Near ₦1,358 at Official Market

The Nigerian naira opened the new trading week on a stronger footing against the US dollar, with the local currency trading at about ₦1,357.61 per dollar at the Nigerian Foreign Exchange Market (NFEM).

The latest movement continues a period of relative stability for the naira after significant volatility in Nigeria's foreign-exchange market over the past few years.

Data published by the Central Bank of Nigeria shows that the NFEM rate is calculated from transactions in the official foreign-exchange market and serves as the official daily benchmark.

At the parallel market, the dollar was being quoted at around ₦1,420, leaving a difference of approximately ₦62.39between the two market rates, according to Monday market reports.

Naira Strengthens at Official Window

The reported NFEM rate represents an improvement from recent levels.

The naira had closed at about ₦1,358.25 per dollar at the official market at the end of the previous week, according to reporting based on official market data.

The movement suggests continued relative strength in the formal foreign-exchange market as traders monitor dollar liquidity, demand and the Central Bank of Nigeria's monetary and foreign-exchange policies.

However, the difference between the official and parallel-market rates shows that the two segments are still not trading at exactly the same level.

What Is Supporting the Naira?

Recent reports have linked the naira's improved performance to stronger foreign-exchange liquidity and developments in Nigeria's external reserves.

Nigeria's foreign-exchange reserves have also attracted attention, with recent reports putting reserves above $52 billion, a level that provides the CBN with greater room to manage liquidity conditions in the official market.

The CBN's foreign-exchange framework has increasingly focused on improving transparency and allowing market forces to play a greater role in determining the official exchange rate.

While stronger reserves and improved liquidity can support the naira, exchange rates can still move as demand for dollars changes.

What the Rate Means for Nigerians

The naira-dollar exchange rate remains important for businesses and households because Nigeria relies on imported goods and services across several sectors.

Importers, manufacturers and companies that make payments in foreign currencies are particularly sensitive to movements in the exchange rate.

A stronger naira can reduce the local-currency cost of dollar-denominated imports when the movement is sustained. However, the effect on consumer prices is not always immediate because businesses may be working with inventory purchased at earlier exchange rates.

Travellers, students paying fees abroad and Nigerians making international payments also continue to monitor the exchange rate closely.

Official and Parallel Rates Remain Different

Despite the recent improvement, the difference between the two markets remains an important part of Nigeria's foreign-exchange story.

The reported parallel-market rate of around ₦1,420 per dollar is roughly ₦62 above the latest NFEM figure of ₦1,357.61.

The size of that gap can change depending on dollar availability, demand and trading conditions.

For businesses and individuals, the actual rate available for a transaction may also differ depending on the bank, authorised dealer, transaction type and prevailing market conditions.

What to Watch This Week

Market participants will be watching whether the naira can maintain its recent strength as the new trading week progresses.

Key factors include foreign-exchange liquidity, dollar demand from importers and other businesses, movements in Nigeria's external reserves and any new policy decisions from the CBN.

For now, the latest figures point to a relatively firm opening for the naira, although one day's movement does not necessarily indicate the direction of the currency over the longer term.

Sources

• Central Bank of Nigeria (CBN) — NFEM exchange-rate data and official foreign-exchange information.

• Vanguard — August 17, 2026 report on the naira-dollar exchange rate.

• The Nation — report on the naira's latest official-market performance and foreign reserves.

• DMarket Forces — analysis of the naira's 2026 performance and foreign-exchange liquidity.

• Legit.ng — recent report on the naira's official-market gains and Nigeria's external reserves.