Naira Slips to N1,361.84 per Dollar as CBN Data Shows N27 Loss in Two Sessions

The Nigerian naira weakened to N1,361.84 per dollar on Friday, October 23, 2026, from N1,334.72 two days earlier, a loss of N27.12, according to Central Bank of Nigeria (CBN) data reported by Legit.ng. The 2.03% depreciation came even as the country's external reserves rose to $55.16 billion, a combination that puts fresh attention on how Africa's largest economy is managing its currency.

Contents

01

Official Market Rate and the Two-Day Slide

02

Parallel Market and the Narrowing Gap

03

Reserves Rise but the Currency Still Weakens

04

What Comes Next for the Naira

Official Market Rate and the Two-Day Slide

At the official Nigerian Foreign Exchange Market, the naira closed Friday's trading at N1,361.84 per dollar, compared with N1,334.72 on Wednesday, October 21. The N27.12 loss over two trading sessions also represented a week-on-week decline of the same amount, reflecting renewed pressure on the local currency. For businesses and individuals buying dollars through the official market, the latest rate means higher naira costs than on Wednesday.

The depreciation could increase the cost of imported goods and services if the weaker exchange rate persists. The report noted that the naira's troubles were not limited to the official window, with the parallel market also recording a decline.

The move followed a smaller slide earlier in the week. Legit.ng reported that the naira closed at N1,333.76 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, October 19, compared with N1,331.76 in the previous session, a drop of N2 or 0.15%. NAFEM is the official trading window where the CBN publishes a reference rate used for formal transactions.

The local currency also weakened against other major currencies on that Monday. It fell N15.85 against the pound sterling to N1,778.30 and shed N6.77 against the euro to close at N1,497.41, showing that the pressure was not confined to the dollar alone.

Parallel Market and the Narrowing Gap

At the parallel market, where Bureau de Change dealers operate, currency traders told DAILY POST that the naira weakened by N5 to exchange at N1,375 per dollar. That places the difference between the official and parallel market rates at N13.16 per dollar. Although the parallel market rate remains higher, the relatively narrow gap suggests that both markets are experiencing pressure.

The parallel market often serves Nigerians who cannot access official channels, and its rates can reflect demand from individuals and small businesses. For forex beginners, USD/NGN is simply the price of one US dollar in naira: a higher number means the naira has weakened and each dollar costs more local currency. The official rate is used for formal transactions, while the parallel market rate is used by those who cannot access official channels, and the gap between the two can indicate pressure in the system.

Reserves Rise but the Currency Still Weakens

Nigeria's external reserves reached $55.16 billion as of October 22, 2026, according to CBN figures. Foreign exchange reserves act as a financial buffer, helping countries meet external obligations and manage potential currency market disruptions. However, rising reserves do not automatically translate into an appreciating currency. Exchange rate movements also depend on dollar demand, foreign exchange supply, investor confidence and broader economic conditions, the report noted.

The latest depreciation could put additional pressure on importers, manufacturers and businesses that depend on foreign currency to purchase raw materials, equipment and other essential products. Nigerians paying overseas tuition, international travel expenses and foreign-denominated bills may also face higher costs. For households already managing elevated living expenses, sustained currency weakness could eventually translate into higher prices for imported products.

What Comes Next for the Naira

Attention will now turn to the naira's performance in the coming trading sessions and whether improved dollar supply can help stabilise the exchange rate. The report did not announce any new policy measures from the CBN, but market participants will watch for any signals from the apex bank as the currency trades near its latest levels.

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