The Nigerian naira strengthened further against the United States dollar on Thursday, closing at ₦1,338.59 per dollar at the official foreign exchange market, its strongest level in about five months.
The latest appreciation represents a ₦5.00 gain from the ₦1,343.59 per dollar recorded in the previous session, as improved dollar liquidity continues to support the local currency.
The naira’s recent recovery has also coincided with a stronger position in Nigeria’s external reserves. Latest data cited from the Central Bank of Nigeria (CBN) showed that the country’s reserves had risen to about $53.11 billion as of August 24, 2026, their highest level in more than 17 years.
The improvement extends a recent period of relative stability for the naira. Earlier this month, the currency also recorded gains at the official market, with the exchange rate moving closer to the ₦1,300/$ range. Read TheNaijaWide’s earlier report on the naira’s recent gains.
Market indications for Friday, August 28, put the dollar at around ₦1,341.66, although the final official NFEM rate will depend on transactions recorded during the trading session and could differ from the indicative figure.
Despite the improvement at the official market, a significant gap remains between the official and parallel markets.
The dollar was reportedly quoted at around ₦1,400 to buy and ₦1,410 to sell in the parallel market on Thursday.
At a selling rate of ₦1,410, anyone looking to purchase $1 through the parallel market would need approximately ₦1,410, while someone selling $1 could receive around ₦1,400, depending on the dealer and location.
Using the indicative official rate of ₦1,341.66 against the parallel-market selling rate of ₦1,410, the difference is approximately ₦68 per dollar.
The stronger naira is significant for individuals and businesses that rely on foreign currency for imports, international travel, overseas tuition, medical expenses and other dollar-denominated transactions.
Improved foreign exchange liquidity has been identified as one of the factors supporting the naira, while the rise in external reserves provides the country with a stronger buffer against foreign exchange pressures.
The latest reserve position is also significant because Nigeria’s external reserves have been building steadily in recent months. CBN data showed reserves rising from about $45.57 billion at the beginning of 2026 to more than $53 billion by August.
However, the official exchange rate does not necessarily represent the exact amount customers will pay when purchasing dollars.
Banks, Bureau de Change operators and other authorised dealers may offer different rates depending on the transaction type, amount, location and prevailing market conditions.
Parallel-market rates are unofficial and can change several times within a day. The Central Bank of Nigeria does not recognise the parallel market as an official foreign exchange market.
As of Friday morning, the latest available indicative data placed the dollar at approximately ₦1,341.66 at the official market, while parallel-market quotations remained around ₦1,400 to ₦1,410 per dollar.
The naira’s continued performance will now depend largely on foreign exchange liquidity, dollar inflows, external reserves and demand for foreign currency in the coming sessions.
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