The Naira recorded a stronger performance across both the parallel and official foreign exchange markets in the first week of September 2025, extending gains seen at the tail end of August.
Nairametrics data show that the naira firmed steadily in the parallel market throughout the week.
The currency opened at N1,539/$1 on Monday, September 1, maintained the same level on Tuesday, inched slightly stronger to N1,538/$1 on Wednesday, and closed the week stronger at N1,535/$1 on Thursday.
When compared to the first week of August 2025, the improvement becomes even clearer.
The naira traded at much weaker levels, starting at N1,550/$1 on Monday, August 4, sliding further to N1,565/$1 on both Tuesday and Wednesday, before depreciating to N1,570/$1 on Thursday and Friday.
On a week-on-week basis, the final week of August showed relative stability in the parallel market, with the naira fluctuating within a narrow band.
It opened at N1,543.69/$1 on Monday, August 25, dipped slightly to N1,548/$1 on Tuesday, recovered to N1,547/$1 on Wednesday, and firmed up to N1,543/$1 on Thursday before closing the week at N1,545/$1 on Friday, August 29.
Performance at the Official Market
The official market mirrored the gains of the parallel market, with the naira appreciating consistently across trading days in the first week of September.
The exchange rate opened at N1,527.9/$1 on Monday, appreciated to N1,525.45/$1 on Tuesday, strengthened further to N1,522/$1 on Wednesday, and closed the week firmer at N1,511.5/$1 on Thursday, September 4.
This represents a significant improvement compared to early August, when the naira was weaker at N1,535/$1 on August 7, N1,537.25/$1 on August 6, N1,533.5/$1 on August 5, N1,533.85/$1 on August 4, and N1,535.5/$1 on August 1.
The final week of August also showed a more measured performance in the official market, as the naira traded at N1,536.99/$1 on August 25, weakened slightly to N1,538/$1 on August 26, and N1,537.2/$1 on August 27, before recovering to N1,533/$1 on August 28 and closing stronger at N1,531/$1 on August 29.
Analysts’ view on the development
Some analysts have attributed this development to the recent increase in diaspora remittances and foreign portfolio investors (FPIs).
According to an Abuja-based investment analyst, Gideon Agba, “Let’s not forget that the CBN reported that our external reserves rose to $41.3 billion in August, which gives more capacity to the apex bank to further support the naira. This is also good for investors as more portfolio investments will begin to come in due to the stability of the currency, which investors like to see.”
The CBN Governor, Olayemi Cardoso, had earlier stated that Nigerian diaspora remittances rose by 200 per cent to $600 million in the last two months, significantly boosting Nigeria’s foreign exchange profile.
Offshore investor inflows increased from $1.5 billion in June to $1.7 billion, showing cautious foreign investor interest when favorable carry trade conditions and stable global macroeconomic factors are present.
Speaking earlier to Nairametrics, forex traders attributed the recent exchange rate stability to the success of Nigeria’s currency swap agreement with Chinese traders now collecting naira for its currency, the yuan, instead of dollars.
