Naira Falls to N1,331.69/$ as CBN Releases New Exchange Rates

The naira weakened by N1.60 against the US dollar at the official foreign exchange market on Monday, October 5, closing at N1,331.69/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEM). The local currency also lost ground against the pound but strengthened against the euro during the session.

Official Market Movement

The naira fell by N1.60, or 0.12%, to N1,331.69/$1 from N1,330.09/$1 in the previous trading session. Against the pound sterling, it lost 25 kobo to close at N1,759.83/£1, down from N1,759.58/£1 previously. It gained N4.60 against the euro, appreciating to N1,492.16/€1 from N1,496.76/€1 at the previous session.

Parallel Market and FX Turnover

In the parallel market, the naira fell against the US dollar. A BDC trader, Abudullhi, said: "We sold the naira N1,360/$1 and buy at N1,380 on Monday." The currency maintained its rate at N1,338/$1 at the GTBank foreign exchange counter.

Data from the Central Bank of Nigeria showed foreign exchange turnover at the official market dropped during the session. FX turnover declined by 53.2% to $72.119 million on Monday from $154.021 million in the previous session. Despite the fall in turnover, the number of deals increased to 103 from 70.

CBN Rates and Business Outlook

The Central Bank of Nigeria's official selling rates for other major currencies on October 5 were: CFA N2.28, Yuan/Renminbi N198.62, Danish Krona N199.60, Euro N1,492.16, Yen N8.41, Riyal N354.62, South African Rand N80.07, SDR N1,801.55, Swiss Franc N1,601.93, Pounds Sterling N1,759.83, US Dollar N1,331.69, WAUA N1,800.38 and UAE Dirham N362.57.

The development came amid expectations among Nigerian businesses that the naira could record modest gains against the US dollar in the coming months. Businesses continue to face challenges including multiple taxation, insecurity and high interest rates, which could weigh on economic activity and investment.

Earlier, the naira held relatively firm against the United States dollar, with Nigerian businesses signalling expectations of modest currency gains in the months ahead, according to the CBN's Business Expectations Survey for September 2026. The survey showed the Business Confidence Index came in at 13.4 points in September. Respondents said they expected the naira to remain stable and record modest appreciation against the dollar across various review periods.

The mixed rates leave importers and businesses watching official supply closely, especially after FX turnover fell by more than half in one session.