The naira appreciated by 6.26 per cent against the United States dollar over the past year, marking a notable improvement in its exchange rate between November 2025 and November 2026.
According to exchange rate data, the currency strengthened to N1,346.79 per dollar on 6 November 2026, compared with N1,436.74 on the corresponding date in 2025. That represents a gain of N89.95 against the greenback over the 12-month period.
The latest rate indicates that the naira has recovered some ground against the dollar, a development that could ease foreign exchange costs for businesses and consumers that depend on imported goods and services.
A stronger currency and the cost of imports
The appreciation comes amid efforts by the Central Bank of Nigeria to stabilise the foreign exchange market, improve dollar availability and strengthen confidence in the domestic currency.
A stronger naira could reduce the cost of importing raw materials, machinery, pharmaceuticals and other products priced in foreign currencies, potentially easing pressure on businesses and consumers.
However, the extent to which the exchange rate improvement translates into lower prices will depend on how quickly importers adjust their prices and whether the currency maintains its gains.
For manufacturers and other businesses with significant foreign currency obligations, the appreciation could reduce the naira cost of servicing dollar-denominated liabilities.
CBN insists on a market-driven naira
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, said in July 2026 that the naira must remain market-driven and competitive rather than being artificially supported.
Speaking in Abuja, Cardoso said the apex bank remained committed to a transparent, liquid foreign exchange market driven by willing buyers and willing sellers.
He said, “Our view is one of continuing on the path that we have embarked on, and that is to ensure that we have a market that is transparent, that is liquid, and one that has willing buyer, willing seller.
“At the present level, the country does need a competitive currency. The naira’s value has to be determined by economic fundamentals, including stronger oil and non-oil exports, increased foreign direct investment, improved domestic productivity and lower import dependence.”
Cardoso added that the central bank was comfortable that it had a fully functional, open and transparent market, noting that daily turnover sometimes exceeds $1 billion and that the market is responding to the positive measures being implemented by the apex bank.
Reserves provide a buffer above $55bn
Nigeria’s foreign exchange reserves stood at $55.133bn on 5 November 2026, providing a buffer for the country’s external obligations and for efforts to stabilise the naira.
The reserves position reflects the stock of foreign assets available to support foreign exchange interventions and meet external payment commitments.
The level of reserves will remain important to investors as they assess Nigeria’s external liquidity position, currency stability and capacity to withstand foreign exchange pressures.
What the gains mean for businesses and consumers
The 12-month appreciation offers a measure of relief for an economy in which imported inputs feature prominently in production and consumption. Businesses that source raw materials, equipment and pharmaceuticals abroad could see their naira-denominated costs decline if the gains hold.
For consumers, the pass-through to retail prices is less certain. Importers may adjust prices gradually, and the durability of the naira’s gains will shape whether the benefit is sustained.
For now, the combination of a stronger naira and reserves above $55bn offers a more stable backdrop for businesses planning foreign currency obligations and for investors monitoring Nigeria’s external position.
