The naira closed September at 1,329 naira 16 kobo to the dollar in the Nigerian Foreign Exchange Market, NFEM, compared with 1,332 naira 94 kobo at the end of August, representing a 0.28 per cent appreciation.
On a day-on-day basis, however, the naira weakened slightly by 0.12 per cent, with the dollar quoted at 1,331 naira 69 kobo on Monday, the second trading day in October, compared with 1,330 naira 9 kobo on Friday.
In the parallel market, also known as the black market, the naira strengthened by 1.47 per cent, closing at 1,360 naira to the dollar on Monday from 1,380 naira previously.
The development narrowed the gap between the official and parallel market rates to 29 naira, or 2.18 per cent, from 50 naira, or 3.76 per cent, recorded on Friday.
Analysts at Coronation Merchant Bank said the narrowing premium indicates improved convergence between the official and parallel foreign exchange markets, as well as relatively contained near-term FX pressures.
Meanwhile, activity in the interbank segment moderated, with total FX turnover declining by 53.17 per cent to 72.12 million dollars on Monday from 154.02 million dollars recorded on Friday.
Nigeria’s external reserves, which provide the Central Bank of Nigeria with the capacity to support the naira and meet external obligations, also maintained a steady growth trajectory.
The reserves rose to 54.95 billion dollars as of October 2, 2026, representing a 29.57 per cent increase from the 42.41 billion dollars recorded during the corresponding period in 2025, according to data published by the CBN.
The naira’s recent appreciation also came as Nigeria’s gross external reserves increased to 54.92 billion dollars in September, from 53.81 billion dollars in August, representing a 2.07 per cent rise.
The Financial Markets Dealers Association, FMDA, attributed the stronger naira to improved foreign exchange fundamentals, including increased inflows from oil receipts and sustained confidence in the market.
