The naira depreciated by N28 in opposition to the US greenback to shut at N1,365/$ on October 22, 2026, marking its sharpest single-day decline since April 2025.
Data from the Central Bank of Nigeria (CBN) confirmed the alternate price weakened from N1,337/$ recorded on October 21, representing a depreciation of about 2.1% in one buying and selling session.
Checks by Nairametrics revealed that the newest decline was the biggest in the closing alternate price since April 9, 2025, when the naira weakened by N29 from N1,615/$ to N1,644/$.
Naira reverses positive aspects
The newest motion reversed the comparatively slender fluctuations recorded in the previous periods.
CBN information confirmed that the forex had closed at N1,334.99/$ on October 20 and N1,337/$ on October 21 earlier than the newest depreciation.
- The alternate price reached an intraday excessive of N1,369/$ on October 22, whereas the low was N1,336/$.
- The weighted common price elevated to N1,344.40/$ from N1,334.72/$ recorded on October 21.
- The easy common price additionally rose to N1,344.66/$ from N1,335.41/$ in the earlier session.
- (*18*) transactions totalled 181 offers, whereas the reported interbank turnover stood at roughly N316.55 million.
The daily motion stands out in opposition to the extra modest modifications recorded earlier in October, when the naira traded largely inside the N1,330–N1,340/$ vary.
FX demand and portfolio flows form market outlook
The depreciation comes amid important demand for overseas alternate and continued motion in funding flows.
Nairametrics’ evaluation of Financial Markets Dealers Association information confirmed that Nigeria’s overseas alternate demand reached a 15-year high of $18.34 billion in the second quarter of 2026, with demand for {dollars} rising significantly in companies and monetary funds.
- Nigeria’s portfolio funding rose by 45% to $6.51 billion in the second quarter of 2026, in accordance to an earlier Nairametrics report.
- Foreign alternate reserves elevated by $12.76 billion year-on-year to $54.61 billion as of September 14, 2026.
- The reserve stage was above the CBN’s projected year-end 2026 stage of roughly $51.04 billion, as reported by Nairametrics in December 2025.
These figures level to a market formed by each overseas alternate demand and exterior liquidity. However, the newest daily depreciation alone doesn’t set up the precise elements behind Thursday’s motion.
Reserves stay above CBN projection
Nigeria’s overseas alternate reserves present a buffer for assembly exterior obligations and supporting confidence in the overseas alternate market.
- The reported improve to $54.61 billion by September 14 positioned reserves above the CBN’s earlier year-end projection of $51.04 billion.
- At the identical time, the document stage of overseas alternate demand in the second quarter highlights the size of greenback necessities throughout the financial system.
Portfolio funding inflows additionally elevated in the course of the interval, including one other dimension to the nation’s exterior flows.
