The naira exchange rate has settled at ₦1,331.77 per dollar at the official market. That is close to its strongest level in two years. Steady dollar supply and rising reserves continue to back the currency.
The Central Bank of Nigeria (CBN) figures show the naira has recovered ₦328.72, or 24.68%, since October 18, 2024, when it traded at ₦1,660.49. The rate is the weighted average for Wednesday, October 7, on the Nigerian Foreign Exchange Market (NFEM).
It is not a fresh record, though, as the naira touched a two-year high of ₦1,315.67 in early September. 
What is driving the Naira exchange rate
Inflows are the main driver. CBN Deputy Governor Muhammad Sani Abdullahi said nearly 68% of July’s $10.82 billion in FX inflows came from autonomous sources. Remittances through international money transfer operators reached $950 million that month.
Reserves are lending support too. Nigeria’s external reserves stood at about $54.98 billion on October 6. Trading is also busy. NFEM turnover crossed $1 billion earlier this week.
FSDH Merchant Bank says volatility has eased sharply. It compares the current calm with the turbulence of 2025 and early 2026.
The official rate is still stronger than the street rate. The dollar sold for about N1,362 in the parallel market on October 7. That left a gap of roughly N30 per dollar. Some morning quotes on October 8 were higher, at around N1,370.
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Can the upward trend hold?
Bloomberg analysts expect the naira to reach ₦1,290 per dollar by the end of 2026. That would give it a gain of nearly 12% for the year, its best showing since 2018.
Other indicators are improving as well. Abdullahi said inflation fell to 15.43% in July from a peak of 34.8% in December 2024. The CBN also cut its benchmark rate to 23% from 26.5% in September.
Caution remains, though, as United Capital analysts warned that portfolio inflows can reverse quickly. Abdullahi himself noted that progress does not mean pressure on households and businesses has ended.
The naira exchange rate now depends on two things. Dollar inflows must keep coming, and investor confidence must hold.
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