By Boluwatife Oshadiya | October 12, 2026
Key Points
- The naira depreciated by 0.40% week on week to close at ₦1,326.52 per dollar at the Nigerian Foreign Exchange Market (NFEM)
- The Central Bank of Nigeria reportedly sold $151 million into the official market, while external reserves rose by 0.52% to $54.41 billion
- Bonny Light crude climbed 18.32% to $121.33 per barrel, providing potential support for foreign exchange inflows despite continued currency volatility
Main Story
The naira weakened against the U.S. dollar at the official foreign exchange market despite Central Bank of Nigeria intervention and rising external reserves, as demand pressures continued to weigh on the local currency.
The naira depreciated by 0.40% week on week to close at ₦1,326.52 per dollar at the Nigerian Foreign Exchange Market (NFEM), according to the supplied market report. The CBN reportedly sold $151 million into the official market to meet dollar demand from banks.
In the parallel market, the naira strengthened to ₦1,370 per dollar, leaving a ₦44 gap between the official and informal exchange rates at the close of trading on Friday.
Nigeria’s external reserves increased by 0.52% week on week to $54.41 billion. The report attributed the increase to inflows from multiple sources, including remittances and foreign portfolio investments.
Higher crude oil prices also supported expectations of improved foreign exchange inflows. Brent crude traded at $104.20 per barrel, while West Texas Intermediate (WTI) stood at $99.17 per barrel. Both benchmarks had risen above $108 and $103 per barrel, respectively, earlier in the week.
Nigeria’s Bonny Light crude appreciated by 18.32% during the week to settle at $121.33 per barrel, strengthening the potential for higher export earnings.
However, stronger oil prices and reserve accumulation have yet to translate into sustained naira appreciation. Persistent demand for foreign currency continues to challenge the CBN’s efforts to stabilise the market.
The report expects the naira to remain volatile in the near term, although higher reserves and elevated crude prices could provide some support.
What’s Being Said
Central Bank of Nigeria: The CBN reportedly intervened with $151 million in foreign exchange sales to address demand at the official market. The supplied report does not contain a direct statement from the Bank explaining the intervention.
Market analysts: The supplied market analysis suggests that rising external reserves and stronger crude oil prices could support the naira, although persistent dollar demand remains a source of pressure.
Foreign exchange market participants: The divergence between the official and parallel rates indicates that exchange-rate conditions remain uneven across market segments. The supplied report does not include direct quotations from individual traders or market participants.
What’s Next
- External reserves: Further reserve data will help determine whether the recent increase can be sustained through continued export earnings, remittances and portfolio investment inflows.
- Crude oil prices: Developments in global oil markets will influence Nigeria’s potential foreign exchange earnings, although higher prices alone do not guarantee immediate currency appreciation.
- Foreign exchange demand: The naira’s performance will depend partly on the balance between available dollar supply and demand at the official and parallel markets.
Bottom Line
The Bottom Line: Rising reserves and stronger crude oil prices provide potential support for the naira, but the reported depreciation despite CBN intervention shows that these buffers do not automatically translate into currency strength. Sustained stability will depend on the consistency of foreign exchange inflows and the extent to which available dollar supply meets market demand.
