Nigerian naira appreciated further on Monday, trading at N1,527/$1 in the parallel market — its strongest performance in more than a month.
Gatekeepers News reports that the new rate marks an improvement from Friday’s close of N1,530.96/$1, according to Nairametrics data. It is also the best level since July 25, 2025, when the naira settled at N1,520/$1.
Trading trends over the past week show steady gains: the currency closed at N1,539/$1 on Monday, September 1, remained unchanged on Tuesday, edged to N1,538/$1 on Wednesday, strengthened to N1,535/$1 on Thursday, and closed at N1,530.96/$1 on Friday. The momentum continued into the new week with Monday’s N1,527/$1.
In the official window, no rate was published for Friday, September 5, due to the public holiday. However, CBN figures show improvements earlier in the week, with the naira trading at N1,525.45/$1 on Tuesday, N1,522/$1 on Wednesday, and appreciating further to N1,511.5/$1 on Thursday — one of its best showings in weeks, narrowing the gap with the parallel market.
Reserves and monetary policy
CBN data also revealed that Nigeria’s foreign reserves rose slightly by 0.09% to $41.5 billion on September 3. Analysts note that reserve stability is critical for managing debt, boosting investor confidence, and sustaining currency strength.
The central bank says recent gains are the result of improved capital inflows, increased crude oil production, rising non-oil exports, and reduced imports. CBN Governor Olayemi Cardoso had previously affirmed that monetary policy measures were stabilizing the foreign exchange market.
Analysts’ outlook
Standard Bank, however, warned that political developments ahead of the 2027 elections could weigh on the naira.
“Electioneering activities are key factors stakeholders should consider as a likely driver of the USD/NGN pair in 2026 and 2027. Primary election activities are expected to begin in Q1:26, with campaigns… expected to be in full swing from Q3:26. These activities are likely to lead to an increase in dollar demand, which, in addition to increased fiscal spending, should support an increase in money supply,” the bank noted.
Still, it projected that the CBN’s stronger reserve position will provide a buffer against excessive pressure. The bank also revised its outlook for 2025, projecting a 3.1% depreciation to N1,585.5/$1 — stronger than its earlier forecast of N1,697.5/$1.
Dr. Paul Alaje, CEO of SPM Professionals, also cautioned that “reckless handling of foreign exchange during campaigns could erode the fragile economic stability Nigeria is beginning to experience.”
