Naira gains N89.95 against dollar in one year as CBN keeps faith in market-driven rate

The naira strengthened by 6.26 per cent against the United States dollar over the past year, closing at N1,346.79 per dollar on 6 November 2026, compared with N1,436.74 on the same date in 2025. That is a gain of N89.95 on the greenback in 12 months.

The improvement means the local currency has recovered some ground, a move that could ease foreign exchange costs for businesses and consumers who depend on imported goods and services.

What the numbers show

The appreciation came amid Central Bank of Nigeria efforts to stabilise the FX market, improve dollar availability and strengthen confidence in the domestic currency.

A stronger naira could reduce the cost of importing raw materials, machinery, pharmaceuticals and other products priced in foreign currencies. For manufacturers and other businesses carrying significant foreign currency obligations, it could also lower the naira cost of servicing dollar-denominated liabilities.

How far the gain reaches the shelf, however, depends on how quickly importers adjust their prices and whether the currency holds its position. The market has been volatile. Data from the Nigerian Foreign Exchange Market showed the naira weakened to about N1,346 per dollar on 30 October 2026, from N1,329.50 at the end of September, surrendering roughly 42 per cent of the gains recorded during a three-month rally.

Cardoso insists on market-driven rate

CBN Governor Olayemi Cardoso said in July 2026 that the naira must remain market-driven and competitive rather than being artificially supported. Speaking in Abuja, he said the apex bank was committed to a transparent, liquid FX market driven by willing buyers and willing sellers.

He said, "Our view is one of continuing on the path that we have embarked on, and that is to ensure that we have a transparent market, that is liquid, and one that has willing buyer, willing seller."

Cardoso added, "At the present level, the country does need a competitive currency. The naira's value has to be determined by economic fundamentals, including stronger oil and non-oil exports, increased foreign direct investment, improved domestic productivity and lower import dependence."

He also said the central bank was comfortable with the depth of the market, noting that daily turnover sometimes exceeds $1 billion.

Reserves provide a buffer

Nigeria's foreign reserves stood at $55.133 billion on 5 November 2026, providing a cushion for external obligations and for efforts to steady the naira. The reserves represent the stock of foreign assets available to support FX interventions and meet external payment commitments.

Investors will keep watching that number as they assess Nigeria's external liquidity, currency stability and capacity to absorb FX pressure. For importers and manufacturers, the one-year gain offers relief on dollar costs, but the test is whether it is sustained and whether it feeds through to prices.