The Nigerian naira weakened by N5.77 to N1,367.61 per dollar at the official foreign exchange market on Monday, October 26, 2026, extending its recent losses despite rising external reserves and elevated global crude oil prices, according to data released by the Central Bank of Nigeria (CBN).
The local currency closed at N1,361.84 per dollar at Friday's session, meaning Monday's rate represents a depreciation of N5.77. During Monday's trading at the Nigerian Foreign Exchange Market (NFEM), the dollar traded between N1,359 and N1,380.
The trading range marked an improvement from the previous week's intraday high of N1,395, although the naira remained under pressure. Market analysts linked the depreciation to increased demand for foreign currency to settle international obligations and subdued inflows from foreign portfolio investors. Investors' adjustments to their holdings in equities and fixed-income securities also contributed to changing liquidity conditions.
Dollar transactions drop sharply at official market
Foreign exchange activity slowed considerably as transaction volumes and the number of executed deals declined. CBN figures showed that interbank foreign exchange turnover fell to $614.25 million on Monday, compared with $1.01 billion recorded on Friday.
The number of transactions also dropped from 315 to 201, indicating reduced trading activity among authorised market participants, Market Forces Africa reports. The decline in turnover highlights the challenges facing Nigeria's foreign exchange market despite efforts to improve dollar availability.
Nigeria's foreign reserves rise to $55.2bn
Nigeria's external reserves continued their upward trajectory, reaching approximately $55.2 billion. Elevated international crude oil prices have supported the country's foreign exchange earnings, although the improvement has yet to translate into sustained naira appreciation.
Brent crude declined to $114.40 per barrel on Monday as regional exports recovered despite continuing geopolitical tensions in the Middle East.
Pound, euro gain as parallel market holds steady
The naira had previously depreciated by N29.58 against the dollar over the preceding week, closing at N1,361.84. The British pound strengthened by 3.19% to N1,821.46, while the euro appreciated by 2.28% to N1,525.12.
However, the parallel market remained relatively stable, with the dollar trading at N1,370. The pound declined to N1,800, while the euro slipped to N1,500. The contrasting movements underscore the continued uncertainty surrounding the naira's recovery despite Nigeria's improving reserve position.
