Naira Hits Two-Year High at Official Market

The Nigerian naira strengthened to about ₦1,331.77 per dollar at the official Nigerian Foreign Exchange Market, NFEM, according to reports published on Thursday, October 8, 2026.

The improvement was attributed to stronger dollar inflows, improved market liquidity and rising confidence in Nigeria’s foreign-exchange framework. Nigeria’s external reserves were reported at approximately $54.98 billion as of October 6.

Exchange-Rate Snapshot

Parallel-market quotations varied across reports and could change based on location, dealer, transaction size and the time of the transaction. Vanguard reported a buying rate around ₦1,375 and a selling rate near ₦1,390.

Using ₦1,375 as the parallel-market reference, the difference from the official rate is approximately:

₦1,375−₦1,331.77=₦43.23₦1,375−₦1,331.77=₦43.23

That amounts to roughly ₦43,230 for $1,000 and about ₦432,300 for $10,000.

Stronger Dollar Inflows

The recent improvement is being supported by increased foreign-exchange supply.

According to figures cited by BusinessDay, Nigeria recorded $10.82 billion in total FX inflows during July 2026, with $7.33 billion, or nearly 68 percent, coming from autonomous sources rather than direct central-bank supply.

Autonomous inflows can include transactions from exporters, investors, banks and other private-sector sources.

The CBN Deputy Governor, Muhammad Sani Abdullahi, also pointed to stronger remittance inflows and foreign portfolio investment.

These sources matter because they increase the amount of foreign currency available to businesses and individuals through the formal financial system.

Reserves Provide a Buffer

Nigeria’s external reserves reportedly rose to about $54.98 billion by October 6.

Higher reserves can strengthen the country’s ability to meet external obligations and support orderly conditions in the foreign-exchange market. However, reserves alone do not guarantee permanent currency stability.

The naira will continue to be influenced by oil earnings, imports, inflation, investor confidence, remittances, monetary policy and the quality of dollar supply entering the economy.

Official Market Improves, Parallel Pressure Remains

The stronger official rate has not eliminated demand for dollars outside the formal market.

The reported parallel-market selling rate of about ₦1,390 remains higher than the official rate. That means people and businesses unable to access dollars through banks or licensed channels may still face additional costs.

The gap is narrower than during periods of severe naira volatility, but it remains important because a wider difference can encourage speculation, distort pricing and make it harder for businesses to plan.

What the Naira’s Strength Means

A more stable naira can make financial planning easier for companies that rely on imported goods, machinery, raw materials and foreign services.

It also affects Nigerians paying for:

• Overseas tuition.
• International medical treatment.
• Foreign travel.
• Imported food and household goods.
• Software and technology subscriptions.
• International business services.
• Dollar-denominated investments.

However, a stronger currency does not automatically cause consumer prices to fall immediately.

Businesses may still be selling inventory purchased when the dollar was more expensive. Transportation, energy, labour, rent, taxes and financing costs also influence prices.

The Road Ahead

The recent figures represent a significant improvement compared with earlier periods of sharp exchange-rate swings, but sustaining the gains will be the main test.

Market observers will continue to monitor:

• Dollar inflows from exporters and investors.
• Oil revenue and remittances.
• External-reserve accumulation.
• Inflation and interest-rate policy.
• Import demand.
• The gap between official and parallel rates.
• Confidence in the foreign-exchange market.

A narrowing gap would suggest greater convergence between the two markets. A renewed widening could signal fresh pressure on the naira.

Bottom Line

The naira strengthened to about ₦1,331.77 per dollar at the official NFEM window, while parallel-market quotations were reported around ₦1,375 for buying and ₦1,390 for selling.

The official improvement is being supported by stronger dollar inflows, rising reserves and better liquidity. But the parallel-market premium shows that demand for foreign currency remains elevated outside formal channels.

The key question is whether the naira’s recent stability can be sustained long enough to reduce business costs and eventually improve purchasing power for households.

Source: BusinessDay