The naira has shown signs of recovery, gaining N14.74 against the dollar in Nigeria's official foreign exchange market on Tuesday, 27 October 2026. According to Central Bank of Nigeria figures, the official Nigerian Foreign Exchange Market rate improved to N1,352.87 per dollar from Monday's N1,367.61. This development is a welcome respite for the country's economy, which has been experiencing fluctuations in the foreign exchange market.
The Central Bank of Nigeria calculates the NFEM reference rate using a volume-weighted average of transactions. Its reporting framework also provides a separate closing rate for each trading session. Access Bank's published market figures listed the NFEM benchmark at N1,352.8710 and the closing rate at N1,357 per dollar. This indicates a slight variation in rates depending on the source.
The naira also strengthened against other major currencies, including sterling and the euro. The published selling rate for the pound moved to N1,803.24 from N1,825.75, reducing the naira cost of one pound by N22.51. For the euro, the selling rate fell by N21.76 to N1,508.59, compared with N1,530.35 in the preceding session.
Trading activity slowed down as the naira gained, with interbank foreign exchange turnover dropping to $543.74 million from approximately $614.25 million on Monday. This represents a reduction of about $70.51 million, or 11.48 per cent. The number of interbank deals also declined, with banks completing 197 deals during Tuesday's session, four fewer than Monday's 201.
The decline in trading activity was accompanied by a narrowing of the range of dollar transaction rates. According to reports, dollar transactions took place at rates ranging from N1,344 to N1,368.50 during the session. The simple average rate was put at N1,355.83 per dollar. In the parallel market, bureau de change operators in Abuja quoted between N1,380 and N1,385 per dollar on Tuesday.
The official market's recovery has been attributed to additional dollar supplies through authorised dealer banks. MarketForces Africa reported that the improvement was due to Central Bank of Nigeria intervention following recent pressure on the currency. This development has brought some relief to the foreign exchange market, which has been under strain.
Meanwhile, Nigeria's external reserves have continued to show signs of improvement, reaching $55.26 billion as of Monday, 26 October, according to Central Bank of Nigeria data. This represents a 28.3 per cent increase over the same period last year, when the reserves stood at $43.07 billion. The growth in external reserves is a positive indicator for the country's economy.
Key points
- The naira gained N14.74 against the dollar in the official market.
- Interbank foreign exchange turnover dropped by 11.48 per cent.
- Nigeria's external reserves reached $55.26 billion as of October 26.
