Naira strengthens to N1,365/$ as Nigeria’s FX market faces sustained demand

The naira strengthened against the dollar on Monday, October 26, 2026, closing at N1,365/$, compared with N1,370/$ on Friday, October 23.

Data from the Central Bank of Nigeria (CBN) showed that the currency traded between N1,359/$ and N1,380/$ during Monday’s session, with a weighted average rate of N1,367.61/$.

Despite the recovery from Friday’s close, the naira remains 2.5% weaker than its October 2 closing rate of N1,332/$.

The movement comes as Nigeria’s foreign exchange market continues to record significant utilisation across different sectors, alongside substantial inflows from autonomous sources.

The currency’s performance reflected a sharper depreciation towards the end of the month, after trading within a relatively narrow range around N1,330/$ during the first three weeks of October.

Key figures from the latest trading session included:

The latest data indicate that the currency remains under pressure compared with its position at the start of October, although daily closing rates have fluctuated during the period.

The naira’s movement comes against the backdrop of substantial foreign exchange activity in the Nigerian economy.

Nairametrics previously reported that Nigeria’s FX utilisation reached a record $7.61 billion in June 2026, representing a 78.1% increase from the $4.27 billion recorded in June 2025.

The increase was driven largely by invisible transactions, which include payments for services and other non-goods transactions.

Nairametrics also reported that total FX utilisation rose by 91.1% to $50.93 billion in 2025, its highest annual level since 2019. Invisible transactions accounted for $30.99 billion, while imports accounted for $19.94 billion.

These figures reflect the scale of foreign exchange usage across the economy, but they do not, on their own, establish the direct cause of the naira’s daily depreciation.

Nigeria recorded total foreign exchange inflows of $109.9 billion in 2025, according to figures previously reported by Nairametrics. Autonomous inflows increased by 25.12% to $70.54 billion, accounting for 64.21% of total inflows.

The currency’s near-term direction will depend on conditions in the FX market, including the balance between demand and supply.

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