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

The last time the local currency traded near this level was on 14 July 2025, when it closed at N1,518.73 per dollar.

At the end of Monday’s trading session, the naira appreciated by 0.4 per cent, with the dollar quoted at N1,526.09 on the first trading day of September. This compared to N1,531.57 on Friday, the final trading day of August 2025, at the Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN).

In the parallel market, often referred to as the black market, the naira remained unchanged at N1,540 per dollar, a level it has held since 25 August 2025.

Total FX inflows into the NAFEM window closed at $706.70 million, lower than the $751.70 million recorded the previous week. A report by Coronation Merchant Bank revealed that non-bank corporates accounted for the bulk of inflows, contributing $250.00 million (35.38 per cent). Foreign Portfolio Investors (FPIs) followed with $198.30 million (28.06 per cent), exporters brought in $145.10 million (20.53 per cent), while the CBN injected $88.50 million (12.52 per cent). Inflows from individuals and other sources represented 0.81 per cent and 2.70 per cent, respectively.

CBN figures also showed that Nigeria’s gross external reserves climbed by $161.06 million, or 0.46 per cent week-on-week, to $41.27 billion.

The naira had closed last week at N1,531.57 per dollar at NAFEM, reflecting a modest gain of 0.23 per cent (N3.47). In the parallel market, the currency appreciated by 0.97 per cent week-on-week to N1,540 per dollar.

Throughout August, the naira posted a marginal rise against the dollar, supported by stronger reserves and improved FX inflows, particularly from foreign portfolio investors and diaspora remittances. The local currency ended the month at N1,531.57 in the official market, indicating improved liquidity conditions.

Director-General of the Budget Office of the Federation, Tanimu Yakubu, said the naira had strengthened by 15.28 per cent over five months, reaching N1,525 per dollar by August 2025, equivalent to an annualised appreciation of nearly 48.9 per cent.

Yakubu credited the recovery to intentional policy reforms, including higher oil revenues, rising remittances from Nigerians abroad, and the clearance of over $4 billion in FX backlogs, which restored investor confidence. He also noted that the unification of Nigeria’s multiple FX windows created a single, transparent market rate that allowed the naira to settle at a more realistic value.

“This wasn’t luck; it was policy,” Yakubu said. “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.”