The naira has reversed about 42% of its gains recorded between July and September 2026, as the exchange rate weakened from N1,329.50/$ at the end of September to N1,346/$ on October 30.
This is according to data from the Nigerian Foreign Exchange Market (NFEM).
The latest figures show that the currency’s October depreciation has partly eroded the appreciation recorded during the previous three months, although the naira remains stronger than its July closing level of N1,369/$.
The exchange rate stood at N1,332/$ on October 2 before weakening to N1,346/$ at the end of the month, reflecting a depreciation of about 1.05% during October.
Naira gives back recent gains
Data from the NFEM show that the naira strengthened through much of the July-to-September period, closing at N1,329.50/$ on September 30, compared with N1,369/$ on July 1.
- That represented an appreciation of N39.50, or approximately 2.88%, over the period.
- However, the currency weakened by N16.50 between the end of September and October 30, reversing about 42% of its earlier gains.
The naira’s October performance was uneven, with the currency strengthening during the first half of the month before losing ground later.
- The exchange rate closed at N1,332.99/$ on October 12 and N1,335.50/$ on October 13.
- It strengthened to N1,329.50/$ on October 19 before closing at N1,334.99/$ on October 20.
- The naira weakened to N1,370/$ on October 23 before recovering to N1,365/$ on October 26.
- By October 30, it had closed at N1,346/$, following rates of N1,349/$ on October 28 and N1,346/$ on October 29.
The figures indicate that the naira experienced notable fluctuations during the month rather than a steady depreciation.
Net reserves rise to $46 billion
The exchange-rate movement comes as Nigeria’s external reserve position has improved.
Higher reserves can strengthen a country’s capacity to meet external obligations and support confidence in its foreign exchange market. However, the reserve figures alone do not establish the cause of the naira’s October movements.
World Bank raises growth forecast
Nigeria’s economic outlook also received an update in October, when the World Bank raised its 2026 growth forecast to 4.3%, compared with 4.0% in 2025.
- The bank projected that the economy would grow by 4.4% in both 2027 and 2028.
- The revised forecast points to an improved growth outlook, although economic expansion does not automatically translate into exchange-rate stability.
The naira’s performance in the coming months will remain an important indicator of conditions in the foreign exchange market, while reserve levels and broader economic developments will continue to shape the outlook.
