The naira ended the week with a gain of N11.12 per dollar in the official foreign exchange (FX) market, as market liquidity surged amid growing external buffers.
Data published by the Central Bank of Nigeria (CBN) showed that the naira appreciated by 0.83 percent week-on-week, with the dollar quoted at N1,346.49 on Friday compared with N1,357.61 quoted on Friday last week at the Nigerian Foreign Exchange Market (NFEM).
On a day-on-day basis, the local currency strengthened marginally by N1.14 from N1,347.63 on Thursday. Over the five trading days, the naira gained N3.05 per dollar from N1,349.54, the opening rate on Monday.
In the parallel market, also known as the black market, the local currency closed the week at N1,405, marking a gain of 0.35 percent compared with N1,410 previously. The gap between the official and parallel market rates widened to 4.75 percent on Friday, compared with 4.64 percent last week.
Although NFEM figures for deals and turnover on Friday were not available as of the time of reporting, market activity increased during the week, with total turnover at the NFEM window surging by 33.16 percent week-on-week to $5.26 billion on Thursday, compared with $3.95 billion recorded on Thursday last week.
The number of deals also rose by 6.59 percent week-on-week, from 1,791 on Thursday last week to 1,909 deals on Thursday.
In the interbank segment of the FX market, the number of deals increased slightly to 766 on Friday, representing a 0.66 percent increase from the 761 deals recorded on Friday last week.
Total interbank turnover, however, jumped by 82 percent to $1.82 billion on Friday, compared with $1.00 billion recorded last week.
Nigeria’s external reserves, which provide the CBN with the firepower to support the naira and meet the country’s external obligations, have maintained a steady growth trajectory, rising to $52.65 billion as of August 19, 2026.
This represented a 28.41 percent increase from the $41.00 billion recorded in the corresponding period of 2025, according to data published on the CBN website.
Meanwhile, dollar demand by end-users declined sharply in April 2026, with total FX utilisation across sectors falling by 35.23 percent to $3.42 billion, as the naira maintained relative stability in the official foreign exchange market, according to the CBN’s monthly economic report.
Data showed that visible imports accounted for 41.92 percent of total FX utilisation, while invisible imports accounted for the larger share of 58.08 percent.
Within visible imports, the industrial sector was the largest user of foreign exchange, accounting for 37.44 percent of total utilisation. This was followed by manufactured products with 21.85 percent, oil imports with 20.11 percent and food products with 14.47 percent.
The transport sector accounted for 3.54 percent of visible import-related FX utilisation, while minerals and agriculture accounted for 1.47 percent and 1.12 percent respectively.
For invisible imports, financial services dominated FX utilisation, accounting for 91.51 percent of the total. Business services followed with 4.37 percent, transport services with 2.58 percent and communication services with 0.84 percent, while other service categories accounted for the balance.
The decline in FX demand came as the naira appreciated against the dollar at the NFEM during the month.
Taiwo Oyedele, finance minister and coordinating minister of the Economy, who presented the reforms scorecard at a media conference, said: ‘Without the reforms, the naira could have traded between N550 and N800 to the dollar in 2026, and the currency would have been largely unavailable.’
The minister, in a presentation on the impact of the reforms, said the official exchange rate had moved from about N460/$ in May 2023 to around N1,358/$ in August 2026, while the foreign exchange premium between the official and parallel markets had fallen from more than 60 percent to less than 5 percent.
He said that without the reforms, the official exchange rate could have been between N550 and N800 to the dollar, although the currency would have been largely unavailable.