Nigeria’s naira has strengthened significantly against the US dollar, reaching a two-year high in the official foreign exchange market.
The naira appreciated to about ₦1,331.77 per dollar, supported by increased dollar inflows and improved liquidity in the foreign exchange market. Nigeria’s external reserves have also increased, reaching about $54.98 billion as of October 6, 2026.
The stronger naira comes despite concerns that recent interest-rate changes could put pressure on the currency. Analysts say the improvement in foreign-exchange liquidity and increased dollar availability have helped support the naira.
A stronger naira could make it cheaper for businesses and individuals to pay for some imported goods and services. However, the impact on prices will depend on how long the improvement in the exchange rate lasts and how businesses adjust their costs.
The development is being closely watched by businesses, investors and consumers because the exchange rate has a major effect on imports, fuel costs, production expenses and the general cost of living in Nigeria.
