The Nigerian naira began the new week trading at different levels against the United States dollar, with a noticeable difference between the official foreign exchange market and the parallel market.
The latest figures published by Vanguard on Monday, September 21, 2026, put the official exchange rate at about ₦1,331.20 to $1. The figure was based on the most recent confirmed Nigerian Foreign Exchange Market (NFEM) rate from Friday, September 18.
The latest official rate represented a marginal movement from the previous figure of ₦1,331.28 per dollar, indicating that the naira remained relatively stable around the ₦1,330 level.
Meanwhile, early trading data showed the dollar-to-naira benchmark at approximately ₦1,330.65 per dollar on Monday morning. This kept the Nigerian currency close to the levels recorded at the end of the previous trading week.
Dollar rate in the parallel market
The situation was different in the parallel foreign exchange market, where the dollar was being quoted at approximately ₦1,395 on Monday.
Based on the reported rates, there was a difference of about ₦63.80 between the latest official NFEM rate of ₦1,331.20 and the parallel-market quotation of ₦1,395 per dollar.
The gap between the two markets means Nigerians seeking foreign currency may encounter different prices depending on where they conduct their transactions.
Parallel-market rates can also change during the day because of movements in dollar supply, demand, location and individual dealer pricing.
For example, a person looking to obtain $100 at the reported parallel-market rate of ₦1,395 would need approximately ₦139,500, although the actual amount could vary depending on the dealer and prevailing market conditions.
At the official rate of ₦1,331.20, the same $100 would have a reference value of about ₦133,120.
Naira’s recent performance
Recent foreign exchange data indicate that the naira has been trading within a relatively narrow band in the official market.
Earlier in September, the local currency also recorded movements in the parallel market. Vanguard reported on September 16 that the naira strengthened to around ₦1,380 per dollar in the parallel market, while the NFEM rate stood at ₦1,329.50 per dollar.
By September 18, however, the dollar was reported at approximately ₦1,375 in the parallel market, compared with about ₦1,331 in the official market.
The latest figures therefore show that the spread between the two markets has changed over recent trading sessions.
Foreign reserves remain significant
Another development attracting attention in Nigeria’s foreign exchange market is the country’s external reserves.
According to the figures cited in the September 21 report, Nigeria’s external reserves stood at $54.61 billion as of September 14, 2026.
The figure was described as an 18-year high and represented a 30.52 per cent increase compared with the corresponding period in 2025.
Higher foreign reserves can provide additional foreign-exchange buffers, although the actual movement of the naira depends on several factors, including dollar demand, supply, monetary policy, capital flows and market conditions.
What the exchange rate means for Nigerians
Movements in the dollar exchange rate are closely watched by businesses and individuals who depend on foreign currency for international transactions.
Importers, students paying overseas tuition, travellers, businesses making international payments and Nigerians receiving or sending dollar-denominated funds may all be affected by changes in the exchange rate.
However, the published figures should not necessarily be interpreted as the exact rate available to every customer.
Banks, Bureau de Change operators and other authorised foreign-exchange dealers may apply different rates depending on transaction size, market conditions and their individual pricing arrangements.
The parallel-market quotation is also subject to frequent changes and should therefore be treated as an indicative market figure rather than a guaranteed transaction rate.
As trading continues during the week, attention will remain on movements in dollar supply and demand and the official NFEM rate.
For September 21, the latest reported figures place the dollar at roughly ₦1,331.20 in the official market and ₦1,395 in the parallel market, highlighting the continuing difference between Nigeria’s two major foreign-exchange segments.
