The naira weakened across foreign exchange segments in October 2026, shedding ₦16.17 over the month even as external reserves climbed and trading activity increased.
Central Bank of Nigeria data showed the dollar at ₦1,346.26 on the Nigerian Foreign Exchange Market (NFEM) at the end of the month, compared with ₦1,330.09 at the start of October a loss of about 1.2%. On a weekly basis the currency was down ₦15.58, or 1.16%, from ₦1,330.68 the previous Friday. Day-on-day it recovered slightly, gaining **65 kobo** from ₦1,346.91 on Thursday.
Parallel Market and the Official Gap
In the parallel market the naira fell ₦25 month-on-month to ₦1,385, a 1.81% decline from ₦1,360 at the beginning of October. Week-on-week it lost 0.5% from ₦1,378. The gap between the official and parallel rates held at about ₦39 per dollar.
More Turnover, Mixed Deals
Interbank FX turnover jumped 77.97% to $5.25 billion in October from $2.95 billion in September. The number of interbank deals rose 4.66% to 2,694 from 2,574.
At the NFEM window, total turnover reached $16.64 billion in October, up from $12.98 billion in September, while the number of deals fell to 6,468 from 6,831. Full Friday figures for NFEM deals and turnover were not available at the time of reporting.
Reserves Climb, Naira Still Soft
Nigeria’s external reserves rose to $55.24 billion as of 29 October 2026 a 28.02% increase from $43.15 billion in the same period of 2025. Higher reserves strengthen the country’s buffer against external shocks and its ability to meet foreign-currency obligations. October’s exchange-rate performance, however, showed that stronger reserves alone have not stopped renewed depreciation of the naira.
World Bank and Oyedele on Reforms
The World Bank noted that gross external reserves moved above $54 billion in September, supported largely by foreign portfolio inflows. It linked Nigeria’s sharp fall in inflation between January and December 2025 from 27.6% to 15.2% to tight monetary policy and reduced exchange-rate volatility. Gross federation revenues, the bank said, rose 69% in real terms between 2023 and 2025, reflecting exchange-rate reforms, the end of the petrol subsidy and stronger revenue administration.
Finance Minister Taiwo Oyedele warned that reversing economic reforms to restore petrol subsidies could renew pressure on the naira and trigger capital flight. Speaking at a press briefing during the IMF–World Bank Annual Meetings in Bangkok, he defended fuel price discounts offered by the Nigerian National Petroleum Company as a commercial retail strategy, not a return to government-funded subsidies.
Oyedele said rolling back reforms could undermine investor confidence, push capital outflows and undo gains in stabilising the foreign exchange market. He argued that when elites and high-net-worth individuals move against the naira and buy dollars, the combination can be highly damaging. Discounts at NNPC Retail, he said, were normal commercial practices similar to “buy one, get one free” or percentage off offers aimed at boosting volumes and customer loyalty rather than reinstating a subsidy.
His comments come as the government defends its reform programme amid ongoing cost-of-living pressure and questions about whether the policies will hold ahead of the 2027 elections.
Bottom Line
October left a clear tension: more dollars in reserves, higher market turnover and a weaker naira. Businesses and households will watch whether increased liquidity and reform continuity can eventually ease exchange-rate pressure, or whether demand and confidence will keep the currency soft into the festive season and beyond.
