The naira on Monday climbed to a six-month high of N1,526.09 per dollar in the official foreign exchange (FX) market, as inflows from non-bank corporates boosted liquidity in the market.

The last time the naira traded around this level was on July 14, 2025, when it exchanged at N1,518.73 per dollar.

At the close of trading on Monday, naira appreciated by 0.4%, with the dollar quoted at N1,526.09 on the first trading day in September, compared to N1,531.57 quoted on Friday, the last trading day of August 2025, at the Nigerian Foreign Exchange Market (NFEM), according to Central Bank of Nigeria (CBN) data.

At the parallel market, also known as the black market, the naira held steady at N1,540 per dollar since August 25, 2025.

Total FX inflows into the NAFEM window settled at $706.70 million, down from $751.70 million in the previous week.

A report by Coronation Merchant Bank stated that Non-bank corporates accounted for the largest share of inflows with $250.00 million (35.38%), followed by Foreign Portfolio Investors (FPIs) at $198.30 million (28.06%). Exporters contributed $145.10 million (20.53%), while the CBN accounted for $88.50 million (12.52%). Inflows from individuals and other sources represented 0.81% and 2.70%, respectively.

Gross external reserves, according to the CBN, increased marginally by $161.06 million (0.46% week-on-week) to $41.27 billion.

Last week, the naira appreciated slightly by 0.23% (N3.47) to close at N1,531.57 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM). In the parallel market, the local currency gained 0.97% week-on-week to settle at N1,540 per dollar.

In August, the naira recorded a marginal gain against the dollar, supported by higher external reserves and increased foreign exchange inflows from foreign portfolio investors and diaspora remittances. The local currency closed the month at N1,531.57 in the official FX market, reflecting improved liquidity conditions.

Tanimu Yakubu, director-general of the Budget Office of the Federation, said the naira strengthened by 15.28% in five months, recovering to N1,525 per dollar by August 2025, at an annualised pace of nearly 48.9%.

Yakubu attributed the rebound to deliberate policy reforms. He cited increased oil revenues, rising diaspora remittances, and the clearance of over $4 billion in FX backlogs as factors that restored investor confidence. He added that the unification of Nigeria’s foreign exchange windows created a single, transparent market rate that allowed the naira to find its realistic value.

“This wasn’t luck; it was policy. Increased oil receipts, swelling diaspora remittances, and the clearing of over $4 billion in foreign exchange backlogs restored investor trust. The unification of Nigeria’s FX windows created a single, transparent market rate, finally letting the currency find its realistic value,” Yakubu said.(Business Day)

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