Naira hits N1,497 per dollar, highest since March

The Nigerian naira strengthened to N1,497.5 per dollar today September 16, achieving its highest value in five months. This improvement follows a gradual upward trajectory that began early this month.

According to data from the Nigeria Foreign Exchange Market (NFEM), which monitors official currency trading, the local currency has steadily gained ground since September 1. Early in the month, the naira moved from rates around N1,526 to closer to N1,514 per dollar within the first few days.

Between September 8 and 10, the currency’s value rose to roughly N1,506 before easing slightly on September 11. Meanwhile, on the parallel market, the naira saw a modest rise, reaching N1,535 per dollar as of Monday, improving from N1,540 recorded on September 12. The exchange rate at this venue has shown relative steadiness throughout September.

Experts anticipate that the naira will likely maintain this narrow trading range shortly. Analysts from Coronation noted that the currency’s growth is supported by sustainable inflows and robust reserves but warned of potential volatility if portfolio investments weaken or demand surges ahead of the festive season.

In addition, Nigeria’s gross external reserves climbed to $41.69 billion last Friday. This accumulation of reserves is expected to strengthen market optimism and assist the Central Bank of Nigeria in managing currency stability.

Despite this encouraging progress, specialists emphasize that lasting durability depends on reforms that diversify the sources of foreign exchange and attract long-term foreign direct investments rather than transient portfolio capital.