Naira steadies at N1,333/$ as dollar demand remains elevated

The naira closed at N1,333.50 per dollar on Monday, October 19, 2026, appreciating slightly from N1,334.20/$ recorded on Friday, October 16, despite fluctuations in foreign exchange market activity.

Data published on the Central Bank of Nigeria’s (CBN) website showed that the currency traded between N1,332.50 and N1,334.50 during Monday’s session.

However, NFEM turnover data for Monday were not available on the apex bank’s website at the time of filing this report. The figures come amid a decline in weekly dollar trading and significant foreign exchange demand earlier in the year.

Naira records marginal appreciation

The naira strengthened by N0.70 against the dollar between Friday and Monday, while the weighted average exchange rate stood at N1,333.72.

• The simple average exchange rate was N1,333.76, according to CBN data.
• Interbank market activity recorded 59 deals, with turnover of approximately N40.60 million.

The closing rate remained within a narrow range, although the available data do not provide a complete picture of Monday’s NFEM trading activity.

FX turnover declines in October

Foreign exchange turnover varied across trading sessions in October, with changes in activity recorded in both the NFEM and interbank markets.

On October 14, NFEM turnover stood at approximately N1.02 billion, while interbank turnover reached N490.86 million. By October 16, NFEM turnover had fallen to about N837.31 million, with interbank turnover at N258.46 million.

Nairametrics previously reported that the value of dollars traded in Nigeria’s foreign exchange market fell by 22.23% to $2.62 billion in the week ended October 16, 2026, from $3.37 billion in the preceding week. The decline was attributed to slower spot trading and a sharp drop in forward transactions.

The weekly figures point to reduced trading volumes, although daily turnover can fluctuate considerably between sessions.

Dollar demand and portfolio inflows shape outlook

Foreign exchange demand and capital flows remain important indicators for Nigeria’s currency market.

Nairametrics’ analysis of Financial Markets Dealers Association (FMDA) data showed that foreign exchange demand reached a 15-year high of $18.34 billion in the second quarter of 2026, with demand for dollars rising particularly in services and financial payments.

• Separately, Nigeria’s portfolio investment rose by 45% to $6.51 billion in the second quarter of 2026, according to an earlier Nairametrics report.
• The increase in portfolio investment provides additional context for developments in capital flows, while the reported fall in weekly dollar trading highlights changes in market activity.
• Nairametrics earlier reported that Nigeria’s foreign exchange reserves gained $12.76 billion year-on-year to $54.61 billion as of September 14, 2026, reflecting the broader increase in the country’s external liquidity.

Nigeria’s reserves are now above the Central Bank of Nigeria’s projected year-end level of approximately $51.04 billion for 2026. The projection was reported by Nairametrics in December 2025.