Naira gains 0.40% as official FX turnover falls 55%

By Boluwatife Oshadiya | October 29, 2026

Key Points

• The naira appreciated 0.40% to ₦1,347.53/$ at the Nigerian Foreign Exchange Market on Wednesday, from ₦1,352.87/$ a day earlier
• Official-market FX turnover fell approximately 55% to $244.61 million, while the number of reported deals declined from 197 to [verify deal count] if the latest figure is available
• The naira weakened 0.36% to ₦1,390/$ in the parallel market, widening the reported gap between the two rates to 3.15%

Main Story

The naira strengthened by 0.40% against the US dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, closing at ₦1,347.53/$ as official-market foreign exchange turnover fell approximately 55% to $244.61 million.

The closing rate improved from ₦1,352.87/$ on Tuesday, according to the figures supplied from Central Bank of Nigeria (CBN) data. The intraday exchange rate ranged between ₦1,342 and ₦1,363.50, compared with a reported high of ₦1,395 earlier in the week.

The report linked the currency’s recent gains to a CBN intervention involving a reported $500 million sale of foreign exchange to banks. However, the supplied material did not include an official CBN statement confirming the amount, transaction date or terms of the intervention.

Trading activity moderated sharply. NFEM turnover declined to $244.608 million from $543.740 million on Tuesday, a fall of approximately 55%. The supplied report also said the number of deals declined, but it did not provide Wednesday’s deal count; that figure should be verified before publication.

In the parallel market, the naira weakened by 0.36% to ₦1,390/$ from ₦1,385/$. The report put the gap between the parallel and official rates at 3.15%, compared with 2.37% previously.

Other currencies recorded mixed movements. At the official window, the pound fell 0.69% to ₦1,790.86, while the euro declined 0.55% to ₦1,500.34. The supplied report said both currencies gained in the parallel market but did not provide their closing rates there.

In commodities, gold rose 0.95% to $4,063.80 an ounce from $4,025.45, while Brent crude fell 1.04% to $110.13 a barrel from $111.29. The report attributed oil-market uncertainty to investor attention on talks in Tehran and renewed attacks on Saudi Arabia, although no supporting source was supplied for those developments.

What’s Being Said

The supplied material cites CBN exchange-rate data but does not include a direct statement from the bank explaining the naira’s appreciation or confirming the reported $500 million intervention. A verified CBN statement is needed before attributing the move definitively to the intervention.

No independent analyst or market participant comment was supplied. A direct response from a foreign-exchange dealer or market analyst would help establish whether the lower turnover reflects reduced dollar demand, limited supply or a broader decline in trading activity.

What’s Next

• Next NFEM release: Subsequent CBN data will show whether the naira’s appreciation continues and whether official-market turnover recovers.
• Intervention confirmation: The reported $500 million FX sale requires confirmation from the CBN, including its timing and scope.
• Market-rate comparison: The next official and parallel-market closing rates will indicate whether the reported 3.15% gap widens or narrows.

The Bottom Line:

The naira’s stronger official closing rate is a positive daily move, but the sharp decline in FX turnover means the price change alone does not establish that dollar-market liquidity has improved. Confirmation of the reported CBN intervention and subsequent trading data will be important in determining whether the appreciation is sustainable.