Naira slips to ₦1,350.86/$ as year-end dollar demand rises

The naira weakened to ₦1,350.8587 per dollar in the official market on Tuesday, November 10, 2026, from ₦1,349.3413 in the previous session, data from the Central Bank of Nigeria (CBN) showed. The move, a depreciation of about ₦1.52, came as demand for international payments and year-end settlements increased.

Official market dollar turnover rose 18% to $248.071 million, but stronger trading did not guarantee better dollar supply.

Turnover rises, supply stays tight

During intraday trading, the dollar climbed to ₦1,354 as demand from banks, importers and other market participants intensified. Activity in the Nigerian Foreign Exchange Market (NFEM) increased as businesses and financial institutions sought more dollar liquidity.

Total dollar turnover rose to $248.071 million on Tuesday, compared with $210.375 million in the previous session. The number of transactions increased from 116 to 144, pointing to stronger participation in the official window.

The demand covered import bills, international transactions and offshore financial obligations. Market observers attributed part of the pressure to seasonal import requirements and corporate payments ahead of the end of the financial year.

Higher trading volumes do not necessarily mean improved dollar availability, especially when demand continues to exceed supply. Foreign investors seeking to repatriate investment proceeds and settle outstanding obligations also added pressure.

Some analysts raised concerns about possible politically related foreign exchange demand ahead of the next election cycle. There is no independently verified evidence linking the latest depreciation to foreign currency purchases by political officeholders.

Reserves fall below $55 billion

Nigeria’s external reserves slipped below $55 billion at the beginning of the week after nine consecutive days of declines. The fall came amid foreign exchange outflows and reported CBN interventions to support liquidity in the official market.

MarketForces Africa linked the earlier reserve build-up to elevated international crude oil prices, improved domestic oil production and increased foreign currency inflows. Investments in Open Market Operations (OMO) bills by offshore investors also contributed to reserve accumulation. Additional inflows from multilateral institutions and external lenders helped strengthen the country’s foreign exchange position.

What it means for importers and consumers

The latest depreciation could raise the naira cost of dollar-denominated transactions for importers, international students and businesses paying foreign suppliers. The immediate impact on consumer prices will depend on how long the exchange rate pressure persists and whether businesses pass additional costs to customers.

The naira ended October 2026 by surrendering about 42% of the gains it recorded during a three-month rally. NFEM data showed the local currency weakened to approximately N1,346 per dollar on October 30, compared with N1,329.50 at the end of September.

Attention remains on the CBN’s liquidity management measures, foreign investment inflows and external reserve movements as the naira approaches the final weeks of 2026.