Naira recovers to ₦1,365/$ but stays 2.5% weaker than October open
The naira strengthened to ₦1,365/$ on Monday, October 26, recovering from Friday's ₦1,370/$ close. Monday's session saw the currency trade between ₦1,359 and ₦1,380, with a weighted average of ₦1,367.61. Despite the one-day gain, the naira remains 2.5% weaker than its October 2 closing rate of ₦1,332/$, reflecting late-month volatility after three weeks of relative stability around ₦1,330.
The movement comes amid record foreign exchange activity. Nigeria's FX utilisation hit $7.61 billion in June 2026 — a 78% jump from June 2025 — driven largely by invisible transactions (services, tuition, medical) which totalled $30.99 billion in 2025. Total 2025 utilisation reached $50.93 billion, the highest since 2019. Meanwhile, FX inflows hit $109.9 billion last year, with autonomous inflows (private-sector channels) rising 25% to $70.54 billion, now accounting for 64% of total supply.
The disconnect — record inflows yet persistent depreciation — signals structural demand pressure outpacing supply. Interbank turnover on Monday was just ₦614 million across 201 deals, suggesting thin liquidity at current rates.
If you're paying foreign tuition, importing inventory, or holding dollar exposure, the 2.5% monthly slide despite massive inflows suggests the market hasn't found equilibrium. Will you lock in rates now or bet on CBN intervention to narrow the gap?