The Naira Is Finding Its Feet Again

For a currency that has spent the past few years giving Nigerians plenty to worry about, the naira is having a relatively quieter moment.

The naira strengthened to about ₦1,320 per US dollar at the Nigerian Foreign Exchange Market on Monday, September 7, according to data from the Central Bank of Nigeria. The currency traded within a narrow range of ₦1,318.50 and ₦1,322.50 during the session, while the weighted average rate stood at ₦1,320.56.

On the surface, it looks like another small movement on an exchange-rate chart. But the bigger story is the direction.

The naira has been showing signs of greater stability in recent weeks, and Nigeria's foreign-exchange reserves have also climbed. Gross reserves reached about $54.08 billion on September 3, their highest level since December 2008, according to recent market reporting based on Central Bank data.

That gives the country a stronger foreign-exchange cushion than it has had in years.

Still, there is an interesting detail beneath the latest appreciation: trading activity has fallen sharply.

Foreign-exchange turnover in the official market dropped to $107.07 million on September 7, down 78.4 percent from the $495.70 million recorded on September 4. It was the lowest daily turnover recorded since April 2.

That matters because a stronger currency is easier to interpret when it is supported by healthy market activity. A quieter market can produce smaller price movements simply because fewer transactions are taking place.

So, the latest naira story is not simply that the currency is “back.”

It is that the currency is showing a degree of calm after a period of extraordinary volatility and investors, businesses and consumers are watching to see whether that calm can last.

There is another piece of encouraging economic data arriving at the same time.

Nigeria's total merchandise trade reached ₦41.44 trillion in the second quarter of 2026, up 19.13 percent from the first quarter. Exports accounted for ₦27.02 trillion, while imports stood at ₦14.42 trillion, leaving the country with a merchandise trade surplus of about ₦12.60 trillion.

Exports rose strongly during the quarter, increasing 18.77 percent year on year and 27.64 percent from the previous quarter. Crude oil remained Nigeria's largest individual export, although non-crude exports also made up a significant share of total exports.

Taken together, the numbers paint a more encouraging picture of Nigeria's external position.

But a stronger exchange rate does not automatically mean cheaper living costs tomorrow morning.

The prices Nigerians pay for food, transport, rent, imported goods and services depend on far more than the daily dollar rate. Businesses also need sustained stability before they can confidently adjust pricing, investment and purchasing decisions.

That is why the most important word in the current naira story may not be strength.

It may be stability.

A currency that moves less violently gives businesses more room to plan, gives importers greater visibility over costs and makes financial decisions less dependent on sudden exchange-rate shocks.

For now, the naira appears to be finding firmer ground. Whether it can stay there will depend on liquidity, dollar supply, reserves, trade flows and the broader direction of Nigeria's economy.

The market has given Nigerians a reason to pay attention.

Now it has to prove that the calm can last.

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