The Nigerian naira appreciated against the dollar in the official foreign exchange market, recovering ₦14.74 as the Central Bank of Nigeria stepped up interventions and external reserves reached $55.26 billion as of October 26, 2026.
The rebound came as renewed regulatory intervention injected foreign exchange liquidity into commercial bank channels.
Official Market Rebound and Parallel Rate Gap
In the parallel market, commonly referred to as the black market, currency dealers quoted buying rates around ₦1,375 and selling rates near ₦1,385 to ₦1,390 per dollar. Data published on the CBN website showed that the reserves increased by 28.30 percent from $43.07 billion recorded on October 27, 2025, strengthening the country’s external buffer amid pressure on the foreign exchange market. Data published by the CBN showed that the naira appreciated by N14.74, or 1.09 percent, as the dollar was quoted at N1,352.87 on Tuesday, compared with N1,367.61 on Monday at the Nigerian Foreign Exchange Market (NFEM). In the parallel market, the local currency steadied at N1,382 per dollar. Interbank trading activity moderated during the intervention, with total turnover declining by about 28.2 percent to $543.74 million as deal counts dipped. As of Monday, November 2, 2026, the latest available figures indicate that the official NFEM rate stood at ₦1,346.26 per dollar, while the parallel market quoted the dollar at approximately ₦1,386.36.
Analysts noted that orderly liquidity conditions helped absorb routine commercial demand for trade settlements, school fees, and capital repatriation. Currency dealers quoted the dollar at approximately ₦1,380.59 for buying and ₦1,386.36 for selling as of Sunday, November 1. The difference between the latest official NFEM weighted average of ₦1,346.26 and the parallel market selling rate of ₦1,386.36 is approximately ₦40.10 per dollar. At the latest available official NFEM rate of ₦1,346.26, $100 is equivalent to approximately ₦134,626, whereas at the parallel market selling rate of ₦1,386.36, $100 would cost approximately ₦138,636.
External Reserves and Oil Sector Windfalls
Nigeria’s gross external reserves climbed to an 18-year high of $55.26 billion as of October 26, 2026, marking a 28.30 percent increase from $43.07 billion recorded on October 27, 2025. Net reserves have risen to a record $46 billion, serving as the first line of defense against speculative attacks and near-term sharp devaluation pressure while helping service external debt.
Higher hydrocarbon earnings underpinned the reserve accumulation. Bonny Light crude traded at approximately $115 per barrel, benefiting from elevated global risk premia, supply disruptions, and strong benchmark prices that provided the CBN’s cash buffer to satisfy import and repatriation demands.
Monetary Policy and Domestic Liquidity Measures
Net reserves climbed to a record $46 billion, serving as a primary defense against speculative attacks and debt-servicing obligations. Broad money supply rose by 5.4 percent to ₦146.6 trillion in September, and overnight interest rates remained around 20 percent.
Domestic refining developments also altered local foreign exchange demand dynamics. Increased output from the Dangote refinery and other local facilities helped reduce the volume of dollars traditionally allocated to imported petroleum products.