Nigeria's external reserves reached $55.26 billion as of 28 October 2026, up 28.18 percent from $43.11 billion in the same period the previous year, according to data published by the Central Bank of Nigeria (CBN). The rising reserves supported a modest strengthening of the naira at the official foreign exchange market, where the dollar was quoted at N1,346.91 on Thursday, compared with N1,347.53 on Wednesday, representing a gain of 62 kobo for the local currency. In the parallel market, the naira also appreciated, with the dollar trading at N1,385 on Friday down from N1,388 the previous day, a gain of N3.
However, the spread between the official and parallel market rates widened to N39, or 2.89 percent, from N30 or 2.22 percent previously. Despite this widening, Olayemi Cardoso, governor of the CBN, noted that the overall premium between the two rates had contracted substantially. "At one point, the premium between the official exchange rate and the parallel-market rate was approximately 60 per cent. Today, it has fallen to about 3 to 4 per cent," Cardoso said. He added that the narrowing gap reflected improvements in the foreign exchange market and that greater exchange-rate stability was creating a more favourable environment for investment and long-term financial planning.
Trading activity in the interbank segment moderated significantly. Turnover in the foreign exchange market declined by 77.90 percent to $54.05 million on Thursday from $244.61 million on Wednesday, while the number of deals fell by 50.99 percent, from 151 to 74. At the wider window, total turnover declined by 32.60 percent to $726.33 million on Wednesday from $1.08 billion on Tuesday, and the number of deals fell from 413 to 346 on Thursday, a 16.22 percent decline.
Cardoso said the risks associated with exchange-rate volatility and sharp currency depreciation had reduced considerably. "These are the kinds of developments that encourage investment and make it easier to structure financial products around a more stable currency and economy," he said. The rising reserves provide the CBN with resources to support the naira and meet the country's external obligations.