Naira strengthens to N1,329/$ in over two years
Published by YuToday Staff
0 views · 1 hour ago · 4:08 read · September 2, 2026
The Nigerian naira has strengthened to N1,329 per US dollar, its highest level since May 29, 2024, according to data from the Central Bank of Nigeria. The currency rose by N6.50 from Monday’s closing rate of N1,335.50/$, marking a 0.49 percent increase. This latest gain extends the naira’s recovery trend since mid-August, signaling a potential stabilization in the foreign exchange market. The News Chronicle reports the development as part of its latest financial market coverage.
Key takeaways
- The naira has strengthened to N1,329 per dollar, its highest level in over two years.
- The recovery follows policy measures by the Central Bank of Nigeria to stabilize the currency.
- A stronger naira could ease import costs but may challenge exporters.
- Global oil prices and domestic policies will continue to shape the naira’s trajectory.
Naira’s recovery continues amid economic shifts
The Nigerian naira’s recent appreciation to N1,329 per dollar reflects broader economic adjustments, including policy measures and market dynamics. Analysts suggest the currency’s recovery since mid-August may be linked to tighter foreign exchange controls, improved oil revenues, and reduced speculative pressures. The Central Bank of Nigeria has been actively intervening in the forex market to stabilize the naira, though the exact volume of interventions remains unconfirmed. The latest data from The News Chronicle highlights the currency’s resilience, contrasting with its volatility in previous years. While the gains are encouraging, economists caution that sustained stability will depend on continued policy consistency and external economic conditions.
How the naira’s rise compares to past trends
The naira’s current level of N1,329/$ is its strongest since May 29, 2024, when it closed at N1,329.65/$. This marks a notable recovery from the currency’s historic lows in 2023, when it plummeted to over N1,900/$ amid economic headwinds. The recent appreciation follows a period of relative stability, with the naira trading within a narrower band in recent months. The News Chronicle notes that the currency’s performance aligns with Nigeria’s efforts to attract foreign investment and stabilize its forex reserves. However, the long-term outlook remains uncertain, as global oil prices and domestic economic policies continue to influence the naira’s trajectory.
Impact on Nigeria’s import-dependent sectors
A stronger naira could ease pressure on Nigeria’s import-dependent sectors, including manufacturing, agriculture, and consumer goods. Importers of raw materials and finished products may benefit from lower costs, potentially translating to reduced prices for locally produced goods. However, exporters of non-oil commodities could face challenges, as a stronger naira may reduce the competitiveness of their products in international markets. The manufacturing sector, in particular, could see improved margins if the trend persists. The News Chronicle reports that businesses are cautiously optimistic about the naira’s recovery, though many remain wary of potential reversals.
Central Bank’s role in forex market stabilization
The Central Bank of Nigeria (CBN) has played a pivotal role in the naira’s recent recovery through targeted forex interventions and policy adjustments. While the exact mechanisms behind the latest gains are unconfirmed, the CBN’s efforts to mop up excess liquidity and curb speculative trading have likely contributed to the currency’s stability. The bank has also introduced measures to encourage dollar inflows, including incentives for foreign investors. The News Chronicle highlights that these steps are part of a broader strategy to rebuild confidence in the naira and attract long-term capital. However, the sustainability of these measures will depend on Nigeria’s economic fundamentals and global market conditions.
Global oil prices and their influence on the naira
Nigeria’s economic health is closely tied to global oil prices, and recent fluctuations in the commodity market have had a direct impact on the naira. As Africa’s largest oil producer, Nigeria relies heavily on oil revenues to fund its forex reserves and stabilize the currency. While oil prices have shown signs of recovery in recent months, volatility remains a concern. The News Chronicle reports that a sustained increase in oil prices could further strengthen the naira by boosting dollar inflows. Conversely, a sharp decline in prices could reverse the currency’s gains, underscoring the need for diversified revenue streams.
What happens next
The naira’s future trajectory will hinge on Nigeria’s ability to maintain economic stability amid global uncertainties. Policymakers will need to balance forex interventions with structural reforms to ensure long-term resilience. Businesses and investors should monitor key indicators, including oil prices, inflation, and the Central Bank’s next policy moves. The News Chronicle will continue to provide updates on the naira’s performance and its broader economic implications.
People also ask
What is driving the naira’s recent appreciation?
The naira’s recovery is likely driven by a combination of tighter foreign exchange controls, improved oil revenues, and reduced speculative pressures. The Central Bank of Nigeria’s interventions in the forex market have also played a key role in stabilizing the currency.
How does the naira’s current level compare to past years?
The naira is now trading at its strongest level since May 29, 2024, when it closed at N1,329.65/$. This marks a significant recovery from its historic lows in 2023, when it fell to over N1,900/$ amid economic challenges.
What impact will a stronger naira have on Nigeria’s economy?
A stronger naira could lower import costs, benefiting sectors reliant on foreign goods. However, exporters of non-oil commodities may face challenges due to reduced competitiveness. The manufacturing sector could see improved margins if the trend persists.
Will the naira’s recovery be sustained?
The sustainability of the naira’s recovery depends on continued policy consistency, global oil prices, and Nigeria’s economic fundamentals. While recent gains are encouraging, economists caution that volatility could return if external conditions shift.