Naira Falls to N1,430/$ in Parallel Market as External Reserves Drop to $54.9bn

The naira has weakened to its lowest level in 10 months, exchanging at N1,430 per dollar in the parallel market on Wednesday, amid rising demand for foreign currency ahead of the festive season and increased election-related spending.

Data from currency traders showed that the dollar rose from N1,410 on Monday and N1,425 on Tuesday to N1,430 on Wednesday.

The depreciation widened the gap between the parallel and official exchange rates to approximately N80 per dollar, representing a 5.93 per cent difference.

At the Nigerian Foreign Exchange Market (NFEM), the naira also recorded a slight decline, falling to N1,350.86 per dollar on Tuesday from N1,349.34 on Monday, according to Central Bank of Nigeria data.

Despite the pressure on the currency, foreign exchange transactions increased significantly. Turnover at the NFEM window climbed by 120.59 per cent to $813.54 million on Tuesday, compared with $368.79 million recorded a day earlier.

Meanwhile, Nigeria’s external reserves declined by $330 million to $54.93 billion as of November 9, 2026, from $55.26 billion recorded on October 27.

However, the reserves remain substantially above the $43.37 billion recorded during the corresponding period last year, representing a 26.65 per cent increase.

A report by Quest Merchant Bank said Nigeria accumulated $295 million in external reserves in October, taking the total to $55.2 billion at the end of the month.

The bank attributed the improvement to stronger crude oil prices, increased oil production, steady diaspora remittances and access to external financing.

It added that Nigeria recorded the strongest reserve growth among Egypt, South Africa and Nigeria in 2026, with an accumulation of $9.7 billion.

Quest Merchant Bank expects rising oil revenues and improved production to support further reserve growth, although increased seasonal demand for foreign exchange could continue putting pressure on the naira in the coming weeks.