Naira Eases to ₦1,450/$ as CBN Foreign Reserves Reach New Peak

The naira held steady in the mid-N1,400s per dollar range as Nigeria’s foreign exchange reserves improved and demand for hard currency from importers remained strong.

In Lagos’ parallel market, traders sold the U.S. dollar at slightly higher rates, with the naira weakening to between N1,460/$ and N1,475/$ on Thursday. In the official Nigerian Foreign Exchange Market (NFEM), the currency slipped to N1,450/$. Analysts attribute the widening gap between the official and parallel market rates to sustained high demand for dollars—particularly for imports and personal transfers—combined with limited inflows through formal FX channels.

Despite these pressures, the naira’s medium-term outlook remains positive. Nigeria’s foreign reserves have climbed to $46.7 billion, the highest level in seven years, bolstered by stronger oil revenues, increased portfolio inflows, and renewed investor confidence.

Speaking on behalf of CBN Governor Olayemi Cardoso in Abuja, Deputy Governor for Economic Policy Muhammad Abdullahi described the higher reserve position as a major milestone in the bank’s reform program. He noted that the current reserve level is sufficient to cover more than ten months of imports, underscoring rising foreign demand for Nigerian assets and improved economic fundamentals. Cardoso also credited enhanced market liquidity, higher crude sales, and targeted policy measures for helping stabilize the exchange rate.

Meanwhile, the House of Representatives’ Ad-Hoc Committee on the Implementation and Oversight of the Naira-for-Crude Oil Policy has given concerned agencies a seven-day deadline—until November 27—to submit required documents. Committee chairman Hon. Boniface Emerengwa issued the warning after several invited agencies failed to attend an investigative hearing or provide needed documentation.

“The hearing was adjourned due to the gross negligence and lack of seriousness displayed by the relevant stakeholders,” Emerengwa said. He criticized the agencies for ignoring prior notices and failing to cooperate with legislative efforts to support effective policy execution.

U.S. Dollar Index Holds Above 100

The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, traded slightly lower around 100.15 as traders digested conflicting and delayed U.S. labor data, adding uncertainty to the interest rate outlook.

Markets are now awaiting the preliminary U.S. S&P Global Purchasing Managers’ Index (PMI), due Friday, for additional direction.

The Bureau of Labor Statistics reported stronger-than-expected job gains in September, but a rise in the unemployment rate and downward revisions to earlier data paint a mixed picture for the Federal Reserve as it considers whether to cut interest rates next month to support the labor market.

Ongoing delays in key U.S. reports on jobs and inflation—caused by a government shutdown—have further clouded the economic outlook.

Still, cautious comments from Federal Reserve officials may help limit losses for the DXY. Cleveland Fed President Beth Hammack reiterated her resistance to further rate cuts amid ongoing inflation concerns. Philadelphia Fed President Anna Paulson added that she is approaching December’s policy meeting “cautiously,” stressing the need to balance persistent inflation risks against weakening labor indicators.