Naira Slides to N1,430/$ in Black Market as Reserves Ease to $54.93bn

The naira weakened to a 10-month low of N1,430 per dollar in the parallel market on Wednesday, from N1,425 on Tuesday and N1,410 on Monday, as festive-season and election-related demand for dollars gathered pace. Official data showed the naira also slipped at the Nigerian Foreign Exchange Market, quoting at N1,350.86 per dollar on Tuesday from N1,349.34 on Monday.

Parallel market gap widens

The fall widened the gap between the official and parallel market rates to about N80 per dollar, or 5.93 percent, from N66, or 4.89 percent, on Monday. A currency trader linked the pressure to seasonal foreign exchange demand, which typically rises ahead of the festive season, adding that election-related spending could intensify it.

Official window turnover jumps

Market activity improved at the NFEM window. Total turnover surged 120.59 percent to $813.54 million on Tuesday from $368.79 million on Monday. The number of deals rose 25.83 percent to 341 from 271. In the interbank segment, turnover increased 17.92 percent to $248.07 million on Tuesday from $210.38 million on Monday, while deals rose 24.14 percent to 144 from 116. The naira depreciated by N1.52 at the NFEM window between Monday and Tuesday.

Reserves fall from October peak

Nigeria’s external reserves declined by $330 million to $54.93 billion as of November 9, 2026. That was a 0.59 percent contraction from the $55.26 billion peak recorded on October 27, 2026, according to CBN data. Reserves remain well above the $43.37 billion recorded in the same period last year, a 26.65 percent increase.

A Quest Merchant Bank report said gross external reserves rose by $295 million month-on-month to $55.2 billion at the end of October 2026. The increase brought cumulative accretion since the start of 2026 to $9.7 billion. The bank attributed the build-up to elevated crude oil prices, improving oil production, resilient remittance inflows and sustained access to external financing. It said reserves were at their highest in 18 years, providing about 15.8 months of merchandise import cover and 10.5 months of total import cover, including services.

Despite the buffer, the naira depreciated by about 1.2 percent month-on-month to N1,346 per dollar at the NFEM window in October, reflecting stronger seasonal foreign exchange demand and foreign portfolio investment-related outflows. Quest Merchant Bank said Nigeria recorded the strongest reserve accumulation among Nigeria, Egypt and South Africa. Egypt’s net international reserves rose by $152 million month-on-month to a record $57.5 billion, while South Africa’s international liquidity position fell by $709 million month-on-month to $71.5 billion. Nigeria added $9.7 billion in the year, compared with $6.1 billion for Egypt and $405 million for South Africa.

The bank expects elevated crude oil prices and improving production to support reserves through year-end, even as seasonal demand could keep pressure on the naira in the near term. For importers and consumers, that mix means a stronger external buffer but little relief from dollar costs in the parallel market.