Naira gains 6.26% against dollar as FX reserves stand at $55.133bn

The naira strengthened by 6.26 per cent against the United States dollar over the past year, reaching N1,346.79 per dollar on 6 November 2026 from N1,436.74 on the corresponding date in 2025. The move represents a gain of N89.95 against the greenback.

The appreciation means the naira has recovered some ground over the 12-month period. It could ease foreign exchange costs for businesses and consumers that depend on imported goods and services.

One-year gain

The exchange rate improvement comes amid efforts by the Central Bank of Nigeria 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 with significant foreign currency obligations, the appreciation could reduce the naira cost of servicing dollar-denominated liabilities. 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.

CBN sticks to market-driven FX

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

Cardoso said: “Our view is one of continuing on the path that we have embarked on, and that is to ensure that we have a market that is transparent, 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.”

He added: “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 buffer

Nigeria’s FX reserves stood at $55.133bn on 5 November 2026. The reserves provide a buffer for the country’s external obligations and efforts to stabilise the naira. The position reflects the stock of foreign assets available to support FX 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 the naira, the combination of a stronger exchange rate and reserves above $55bn gives the CBN more room to manage FX demand. For consumers and businesses, the benefit will show in import costs only if the gains hold and importers pass them through.