The Nigerian naira saw a marginal gain of N2.17 against the United States dollar in August.
According to the Central Bank of Nigeria (CBN) data, the naira traded at N1,531.57 per dollar at the Nigerian Foreign Exchange Market (NFEM)on Friday, 29 August, which is the last trading day of the month. This reflects a slight gain of N2.17 (0.14 per cent) when compared to N1,533.74 per dollar recorded on 1 August.
Join our WhatsApp ChannelOn a week-on-week basis, the local currency gained N3.46 against the dollar, rising from N1,535.03 on Friday, 22 August to N1,531.57 on Friday. On a day-to-day basis, the naira strengthened by 0.3 percent (N3.9), up from N1,535.45 on Thursday to N1,531.57 at the NFEM on Friday.
At the parallel market, also known as the black market, the naira closed the month with a N10 (0.63 percent) gain, trading at N1,542 per dollar on Friday compared to N1,555 at the beginning of August.
This comes as the external reserves rose by $1.72 billion from $39.54 billion on 1 August 2025 to $41.27 billion on 29 August 2025. The reserves recorded a steady rise in August, reflecting a surge in Foreign Portfolio Investments (FPI) and diaspora remittances.
CBN Governor Olayemi Cardoso had stated that the reserves accretion is a result of strategic reforms and is expected to continue. One of the reforms focused on improving channels for Nigerians abroad to send money home, thereby boosting diaspora inflows.
Experts have said the rising FX reserves help to strengthen the naira, stabilise the economy, and boost investor confidence.
Strong reserves enable the country to meet its external financial obligations and moderate inflationary pressures.
FPI, according to reports, has continued to dominate foreign inflows. A recent report on foreign portfolio investment by the Nigerian Exchange (NGX) showed that it rose to a high of about N1.3 trillion, underlining improving global investors’ confidence in Nigeria’s macroeconomic outlook.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
