The naira weakened by N11.10 against the US dollar in the interbank foreign exchange market on Wednesday, September 9, 2026, closing at N1,334/$ compared with N1,322.90/$ recorded on Tuesday.
The latest exchange rate data, analysed from figures published on the Central Bank of Nigeria (CBN) website, showed a 0.84 per cent depreciation of the naira.
The decline reversed some of the currency’s recent gains in the Nigerian Foreign Exchange Market (NFEM).
Despite the weaker exchange rate, interbank foreign exchange turnover increased significantly during the session, rising to $94.43 million from $55.60 million recorded on Tuesday.
Interbank FX turnover rises 70%
The latest figure represents an increase of $38.82 million, or 69.82 per cent, in interbank foreign exchange transactions.
The market recorded 86 interbank deals on Wednesday, compared with 58 transactions recorded in the previous session.
This represents an increase of 28 deals, or 48.28 per cent.
However, the increase in transaction activity did not translate into a stronger naira, as the currency closed weaker against the dollar.
Naira trades between N1,321.50 and N1,334/$
During Wednesday’s trading session, the naira traded between a high of N1,334/$ and a low of N1,321.50/$.
The weighted average exchange rate stood at N1,329.21/$, while the simple average was N1,329.44/$.
As of the time of filing the report, the CBN had not published Wednesday’s NFEM deals and total turnover, while the reported $94.43 million represented interbank transactions.
On Tuesday, the naira closed at N1,322.90/$ after trading between N1,318/$ and N1,323/$.
The session recorded 248 deals, including 58 interbank transactions, while total NFEM turnover stood at $933.78 million.
Naira remains stronger than August level
Wednesday’s depreciation came after the naira strengthened to N1,322.50/$ on September 4 and N1,320/$ on September 7 before weakening to N1,322.90/$ on September 8.
The currency had generally appreciated since late August, moving from N1,349.99/$ on August 24 to N1,320/$ on September 7.
At N1,334/$, the naira is now N14 weaker than its September 7 closing rate, representing a depreciation of about 1.06 per cent over the two trading sessions.
However, the currency remains stronger than its August 24 level by about N15.99/$, equivalent to an appreciation of roughly 1.18 per cent.
External reserves, oil output support Nigeria’s FX position
Nigeria’s external position has continued to receive support from foreign exchange inflows and improved oil earnings.
Nigeria’s external reserves reportedly crossed the $54 billion mark for the first time since December 2008, reaching $54.08 billion as of September 3, 2026.
Operational data from the Nigerian National Petroleum Company (NNPC) also showed relatively strong crude oil and condensate production during the second quarter.
Production averaged 1.68 million barrels per day in April, 1.73 million barrels per day in May and 1.72 million barrels per day in June, while July production stood at 1.68 million barrels per day.
Global dollar movement adds pressure
Developments in international financial markets could also influence Nigeria’s domestic foreign exchange conditions.
The dollar index was around 98.81 after moving away from a three-week low, while the euro and pound traded at approximately $1.1633 and $1.3547 respectively.
The yen’s recent gains also eased as investors looked ahead to the Bank of Japan’s monetary policy decision.
For Nigeria, developments in global currency markets remain an important factor in assessing domestic foreign exchange conditions.
Nigeria’s FX demand remains elevated
Nigeria’s total foreign exchange utilisation stood at $50.93 billion in 2025, representing the highest annual level since 2019.
Quarterly utilisation stood at $12.71 billion in the first quarter of 2025 and increased to $13.13 billion in the second quarter.
It later moderated to $12.01 billion in the third quarter before rising again to $13.08 billion in the fourth quarter.
The latest movement comes amid continued adjustments in Nigeria’s foreign exchange market, with the naira recording gains and losses as demand, liquidity and global currency conditions influence trading.
