The Nigerian naira has faced another decline against the US dollar, dropping to ₦1,367.61 at the official foreign exchange market on October 26, 2026. This marks a decrease of ₦5.77 from the previous close of ₦1,361.84 on October 23. The ongoing depreciation comes despite an increase in Nigeria's external reserves and elevated global crude oil prices.

Data from the Central Bank of Nigeria (CBN) indicates that the dollar traded within a range of ₦1,359 to ₦1,380 during the trading session, showing some improvement from last week's peak of ₦1,395. However, the naira remains under significant pressure, primarily due to heightened demand for foreign currency to meet international obligations and reduced inflows from foreign portfolio investors.

Market analysts have pointed out that the decline in the naira's value is linked to a slowdown in foreign exchange transactions. The CBN reported that the interbank foreign exchange turnover fell sharply to $614.25 million, down from $1.01 billion just days earlier. Additionally, the number of transactions decreased from 315 to 201, highlighting the challenges facing Nigeria's forex market.

Despite these challenges, Nigeria's external reserves have seen a positive trend, reaching approximately $55.2 billion. This increase is largely attributed to high international crude oil prices, which have bolstered the country’s foreign exchange earnings. On October 26, Brent crude was priced at $114.40 per barrel, reflecting a recovery in regional exports even amidst ongoing geopolitical tensions in the Middle East.

In the parallel market, the naira has remained relatively stable, trading at around ₦1,370 per dollar. However, the British pound and the euro have appreciated against the naira, with the pound rising by 3.19% to ₦1,821.46 and the euro increasing by 2.28% to ₦1,525.12. This divergence in currency performance underscores the ongoing uncertainty surrounding the naira's recovery, despite improvements in Nigeria's reserve position.

The recent fluctuations in the naira's value reflect a complex interplay of factors affecting the foreign exchange market, including investor sentiment and liquidity conditions. As the situation develops, stakeholders are closely monitoring the market for any signs of stabilization or further decline.