Naira gains 0.84% to N1,346.90/$ as FX turnover jumps 108% week-on-week
The naira strengthened to N1,346.90/$ on Friday August 21, 2026—up 0.84% from N1,358.25/$ two weeks prior—according to CBN NAFEM data. This weekly gain came amid a surge in foreign exchange activity: NAFEM transactions reached $4.52 billion between Monday and Friday, more than doubling the previous week's $2.18 billion (a 107.6% increase). Daily turnover peaked at $1.41 billion on August 17 before easing to $920.46 million on August 20, with CBN not yet reporting Friday's total as of 6:15pm filing time.
Analysts attribute the turnover spike to large corporate transactions rather than broad market improvement. Dr Muda Yusuf of CPPE told Nairametrics the surge likely came from major forex consumers like importers of raw materials or machinery—possibly including entities like Dangote importing crude—and cautioned that 'a small number of large transactions can significantly influence daily and weekly turnover figures.' This context matters because the naira's strength may not reflect uniform demand-supply shifts across the market.
The movement coincides with Nigeria's external reserves rising to $52.02 billion on July 20, 2026—the highest level since January 2009 and above CBN's 2026 projection of $51.04 billion, driven by stronger oil earnings and FX reforms. For individuals and businesses needing forex, this volatility means timing transactions carefully: while the naira strengthened this week, analysts warn the surge may not signal sustained improvement, and large isolated trades could distort perceptions of broader market health. Would you delay dollar purchases awaiting clearer trends, or act now given current levels despite volatility warnings?