Naira strengthens to N1,331/$ as FX turnover swings above $600 million

The Nigerian naira reached N1,331.50 per US dollar on October 6, 2026, as foreign exchange market activity remained unpredictable at the start of the month. The Nigerian Foreign Exchange Market (NFEM) reported that the local currency rose by N1.40 to N1,331.50 from N1,332.90 the previous day, after trading within the N1,330 to N1,333 band.

The recent fluctuations were accompanied by substantial daily NFEM turnover swings, ranging from $196.68 million to $619.22 million. The naira's October 6 closing rate of N1,331.50/$ was backed by a weighted average of N1,330.8745/$, with the currency fluctuating within a three-naira range throughout the session. Despite the relatively narrow exchange rate movements, the daily market turnover exhibited significant variability, even though the naira maintained a relatively stable range.

NFEM trading activity demonstrated considerable variation, with turnover jumping from $569.80 million on October 2 to $619.22 million on October 5, despite the presence of 287 deals on the former day and 249 deals on the latter. The Central Bank of Nigeria (CBN) had not disclosed the total NFEM turnover for October 6 at the time of reporting.

The data indicate that daily liquidity and transaction volumes have been inconsistent, even as the naira has remained within a relatively tight range. This latest movement follows international institutions' ongoing signals of increasing confidence in Nigeria's economic prospects, as evidenced by S&P Global Ratings' upgrade of Nigeria's long-term foreign and local currency credit ratings from 'B-' to 'B'.