The naira strengthened to ₦1,349 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, October 28, 2026, extending its recovery as Nigeria’s foreign exchange reserves remained above $55 billion.
Data from the Central Bank of Nigeria (CBN), reported by Nairametrics on Thursday, October 29, showed that the currency gained ₦8 against the dollar, compared with Tuesday’s closing rate of ₦1,357. The appreciation represents a 0.59% increase in the naira’s value against the dollar.
The latest movement followed gains recorded on Monday and Tuesday, when the naira closed at ₦1,365 and ₦1,357 per dollar, respectively. This means the currency recorded its third consecutive session of appreciation, recovering from the depreciation recorded on Friday, October 23, when it closed at ₦1,370 per dollar.
According to Nairametrics, the naira traded between ₦1,342 and ₦1,363.50 per dollar during Wednesday’s session, while the weighted average exchange rate stood at ₦1,347.53. The report also put foreign exchange turnover at $244.61 million, down from $543.74 million recorded on Tuesday, indicating a reduction in trading activity.
Nigeria’s external reserves, meanwhile, stood at approximately $55.26 billion as of October 26, according to CBN data reported by BusinessDay on October 28. The daily reserve series recorded $55.255 billion on October 26, up from $55.177 billion on October 23, an increase of about $78 million.
The figures show why reports may carry slightly different reserve totals. Some publications round the daily reading to $55.26 billion, while others report the more precise figure of $55.255 billion. Both figures refer to the same October 26 reading rather than separate reserve positions.
The distinction is important because Nigeria’s reserve figures have previously generated confusion after a CBN website reading of $58.81 billion was corrected. The revised figure for October 13 was approximately $55.10 billion, making it necessary to check the reporting date and the underlying data before comparing figures published by different outlets.
Foreign exchange reserves comprise external assets available to support a country’s international payments and provide a buffer against external shocks. For Nigeria, a reserve position above $55 billion strengthens the country’s capacity to meet foreign obligations and can support confidence in its external position. However, the reserve level alone does not establish that the CBN directly caused the naira’s recent appreciation.
BusinessDay attributed the currency’s recovery earlier in the week partly to CBN interventions in the foreign exchange market. Nevertheless, the available daily exchange-rate figures do not independently establish the amount of intervention on Wednesday or how much it contributed to the latest gain.
The naira’s performance also depends on the availability of dollars, demand from importers and other market participants, foreign investment flows and activity in the broader economy. A decline in market turnover can affect trading conditions, but it does not necessarily indicate that demand for dollars has fallen permanently.
The difference between the official and parallel markets also remains relevant to businesses and households. On Wednesday, Bureau De Change operators quoted the dollar at around ₦1,382, according to Arbiterz’s October 28 market report, compared with the official closing rate of ₦1,349. The difference was about ₦33 per dollar, although informal-market quotations vary by dealer and location.
For import-dependent businesses, a sustained improvement in the official exchange rate could reduce the naira cost of eligible foreign payments. However, the benefit depends on access to foreign exchange and whether the currency maintains its gains.
While the latest appreciation and reserve position provide positive signals for the foreign exchange market, sustained stability will depend on consistent dollar supply, market liquidity and broader economic conditions.
