Naira gains 6.26% as Cardoso defends market-driven FX model, reserves hit $55bn

The naira strengthened by 6.26% against the United States dollar over the past year, with the Central Bank of Nigeria governor insisting the currency must stay market-driven and competitive. The gain came as foreign reserves stood at $55.133bn on 5 November 2026.

The currency appreciated to N1,346.79 per dollar on 6 November 2026, from N1,436.74 on the corresponding date in 2025. That represents a gain of N89.95 against the greenback. The latest exchange rate indicates the naira has recovered some ground against the dollar over the 12 months, potentially easing foreign exchange costs for businesses and consumers dependent on imported goods and services.

What the numbers show

The appreciation reflects an improvement in the naira’s exchange rate between November 2025 and November 2026. It comes amid efforts by the CBN to stabilise the foreign exchange 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. That could ease pressure on businesses and consumers. The extent to which the exchange rate improvement translates into lower prices will depend on how quickly importers adjust their prices and whether the currency maintains its gains. For manufacturers and other businesses with significant foreign currency obligations, the appreciation could reduce the naira cost of servicing dollar-denominated liabilities.

Cardoso sticks with market pricing

Olayemi Cardoso, the CBN Governor, said in July 2026 that the naira must remain market-driven and competitive rather than being artificially supported. Cardoso said in Abuja that the apex bank remained committed to a transparent, liquid foreign exchange 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. 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. We are very comfortable at the central bank that we have a fully functional market, a market that is open, that is transparent, a market that sometimes you find that on a daily basis, the amount of turnover is in excess of $1 billion and a market that is responding to the positive things that we are doing as a central bank.”

Reserves provide buffer

Nigeria’s foreign exchange reserves stood at $55.133bn on 5 November 2026, providing a buffer for the country’s external obligations and efforts to stabilise the naira. The reserves position reflects the stock of foreign assets available to support foreign exchange interventions and meet external payment commitments. The level of reserves will remain important to investors as they assess Nigeria’s external liquidity position, currency stability and capacity to withstand foreign exchange pressures.

For Nigerian businesses and consumers, a stronger naira could lower the cost of imported inputs if the gains hold and importers pass them through. For the naira, the reserve buffer gives the CBN more room to manage external obligations while keeping the market approach in place.