Nigerian Naira Strengthens Amid Volatile FX Turnover and S&P Rating Upgrade

The naira strengthened against the US dollar on October 6, 2026, closing at N1,331.50 per dollar on the Nigerian Foreign Exchange Market (NFEM). This marked a gain of N1.40 from its previous close of N1,332.90 per dollar recorded on October 5. The currency's movement occurred amid continued volatility in foreign exchange market activity observed at the start of October.

During the October 6 trading session, the naira exchanged hands between N1,330 and N1,333 per dollar, demonstrating a relatively narrow three-naira range of movement. The closing rate of N1,331.50 per dollar was supported by a weighted average rate of N1,330.8745 per dollar. These relatively narrow exchange-rate movements contrast sharply with the wider fluctuations recorded in daily market turnover, indicating a divergence in market dynamics.

Daily NFEM turnover has shown significant variation in recent sessions, with trading activity ranging widely from $196.68 million to $619.22 million. On October 5, the market recorded a substantial turnover of $619.22 million across 287 deals. This figure was notably higher than the $569.80 million turnover from 249 deals reported on October 2, highlighting inconsistent market liquidity. The Central Bank of Nigeria had not reported the NFEM total turnover for October 6 as of the time of the report.

The figures indicate that daily market liquidity and transaction volumes have been uneven, even though the naira has remained within a relatively tight range. This dynamic is important for investors and businesses seeking predictability and sufficient depth in the foreign exchange market for their operations. The latest currency movement coincides with broader signals of improved confidence in Nigeria’s economic outlook from international institutions.

S&P Global Ratings recently upgraded Nigeria’s long-term foreign and local currency credit ratings to ‘B’ from ‘B-’, a significant development for the country's financial standing. The ratings agency cited improvements associated with the country’s ongoing reforms and positive foreign-exchange developments as reasons for the upgrade. This indicates a growing positive external perception of Nigeria's economic adjustments and their potential impact on stability.