The naira recovered slightly against the US dollar on Monday, October 26, closing at ₦1,365/$ after ending the previous trading session at ₦1,370/$, according to Central Bank of Nigeria (CBN) data.
The improvement came amid continued pressure on Nigeria’s foreign exchange market, where demand for dollars remains substantial despite significant foreign currency inflows from private and other independent sources.
During Monday’s session, the exchange rate moved between ₦1,359 and ₦1,380 per dollar. The weighted average rate stood at ₦1,367.61, while the simple average was ₦1,368.39.
Despite the daily gain, the naira remained weaker than it was at the beginning of the month, when it closed at ₦1,332/$ on October 2.
Exchange rate swings continue through October
The naira traded within a relatively narrow range around ₦1,330/$ during the first three weeks of October before experiencing greater volatility towards the end of the month.
Monday’s closing rate brought the currency back to the level recorded on October 22, highlighting the fluctuations in the market over recent trading sessions.
CBN figures also showed that interbank activity on Monday involved 201 deals, with turnover of approximately ₦614.25 million.
The latest figures indicate that the naira’s short-term recovery has not fully reversed its losses earlier in October.
Foreign exchange spending reaches record levels
Nigeria’s currency market is operating against a backdrop of rising demand for foreign exchange across the economy.
Data previously reported by Nairametrics showed that foreign exchange utilisation reached $7.61 billion in June 2026, up 78.1% from $4.27 billion in June 2025.
Payments for services and other non-goods transactions, classified as invisible transactions, accounted for much of the increase.
Annual FX utilisation also climbed to $50.93 billion in 2025, representing a 91.1% increase and the highest level since 2019. Of that amount, invisible transactions accounted for $30.99 billion, while imports made up $19.94 billion.
These figures illustrate the scale of Nigeria’s foreign currency requirements, although they do not establish that rising utilisation alone caused the naira’s recent movements.
Private-sector inflows provide much of the FX supply
Foreign currency entering Nigeria through sources outside direct CBN supply remains an important part of the market.
According to figures previously reported by Nairametrics, Nigeria recorded $109.9 billion in total FX inflows in 2025. Autonomous inflows rose by 25.12% to $70.54 billion, representing 64.21% of the total.
These inflows include foreign exchange received through private-sector transactions and other channels independent of direct central bank supply.
However, substantial inflows do not automatically translate into a stronger naira. Exchange-rate movements also depend on how much foreign currency buyers seek and how much is available to meet that demand.
What to watch next
The naira’s closing rate of ₦1,365/$ on October 26 marks a modest recovery from Friday’s level, but the currency is still weaker than its October 2 position.
Its performance in the coming sessions will depend on the balance between foreign currency demand and supply, alongside activity across Nigeria’s FX market.
For businesses and individuals who rely on imported goods, overseas payments, or dollar-denominated transactions, further exchange-rate fluctuations could affect their costs and financial planning.
Source: Nairametrics