The naira has strengthened by about 6.3% against the US dollar over the past year, recovering some ground between November 2025 and November 2026.
The currency traded at ₦1,346.79 per dollar on 6 November 2026, compared with ₦1,436.74 on the same date a year earlier a gain of roughly ₦90 against the greenback. The move points to an improvement in the exchange rate over the 12-month period, which could ease foreign-currency costs for businesses and consumers who rely on imports.
What a Stronger Naira Can Mean
A firmer naira can lower the local-currency cost of imported raw materials, machinery, medicines and other goods priced in dollars. Manufacturers and companies with dollar debts may also find it cheaper in naira terms to service those obligations.
How far those gains reach the high street depends on whether importers pass on lower costs and whether the naira holds its recent levels. Exchange-rate improvement alone does not guarantee immediate price cuts if other costs remain high.
CBN Stance: Market-Driven, Not Artificially Fixed
Central Bank Governor Olayemi Cardoso said in July 2026 that the naira should stay market-driven and competitive, not propped up artificially. He reiterated the bank’s commitment to a transparent, liquid foreign exchange market based on willing buyers and willing sellers.
Cardoso argued that the currency’s value should reflect economic fundamentals stronger oil and non-oil exports, more foreign direct investment, higher domestic productivity and less dependence on imports. He also said the market was functioning openly, with daily turnover at times exceeding $1 billion, and responding to the central bank’s reforms.
Reserves Provide a Buffer
Nigeria’s foreign exchange reserves stood at $55.133 billion as of 5 November 2026. That stock of foreign assets supports the country’s ability to meet external payments and, when needed, intervene in the FX market.
For investors, the reserves level remains a key signal of external liquidity, currency stability and the capacity to absorb shocks. Holding above $55 billion offers a meaningful cushion, even as day-to-day naira moves still depend on supply, demand and confidence.
Outlook
The year-on-year appreciation is a positive marker after periods of sharp depreciation. Sustaining it will hinge on continued dollar inflows, disciplined policy and a market that remains liquid enough to absorb both commercial demand and portfolio flows. Businesses and households will watch whether the stronger naira feeds through into more predictable import costs and whether the rate stabilises near current levels or faces fresh pressure in the months ahead.
