By Onu Okorie

The Nigerian naira strengthened against the United States dollar in the official foreign exchange market on Thursday, August 27, 2026, amid improving dollar liquidity and a continued rise in the country’s external reserves.
The latest available data showed the naira trading at ₦1,343.59 to the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), representing an appreciation of ₦3.39, or 0.25 per cent, from the previous trading session’s rate of ₦1,346.98.
Market data also showed the naira gaining against other major currencies. The pound sterling was quoted at about ₦1,827.96, while the euro traded at approximately ₦1,566.09 in the official market.
Trading activity in the foreign exchange market also increased significantly. Turnover rose by 55 per cent to $235.99 million on Wednesday, August 26, from $152.59 million in the preceding session, while the number of deals increased from 144 to 213.
The improvement in the naira’s value comes against the backdrop of stronger external liquidity. Data from the Central Bank of Nigeria showed that the country’s gross external reserves had risen to about $53.11 billion, following an increase of $280 million from $52.83 billion.
Analysts and market reports have linked the stronger reserve position to improved foreign exchange inflows, including proceeds from crude oil sales, capital inflows and remittances. The increase in available dollar liquidity has helped reduce pressure on the naira in the official market.
However, the parallel foreign exchange market continued to trade at a premium to the official window.
Available market quotations on Wednesday put the dollar at about ₦1,398 per dollar for buying and ₦1,407 for selling in the parallel market. Proshare, meanwhile, reported a BDC rate of about ₦1,410 to the dollar on August 27. Rates in the parallel and BDC markets can vary according to location, dealer and transaction size.
The difference between the official and parallel-market rates indicates that demand for foreign currency remains stronger outside the formal market, despite the recent improvement in liquidity.
The naira’s recent performance marks a significant shift from periods of intense pressure earlier in the year, when increased demand for dollars contributed to sharp depreciation. In recent weeks, however, the currency has generally remained within the ₦1,300 range at the official window.
For businesses and individuals requiring foreign currency, authorised banks and Bureau De Change operators may quote rates that differ from the official benchmark, depending on market conditions and the nature and size of the transaction.
The foreign exchange market is expected to remain sensitive to dollar supply, crude oil receipts, capital inflows, remittances and demand from importers and other users of foreign currency in the coming sessions.