The naira has appreciated by 6.26 per cent against the United States dollar over the past year, reflecting an improvement in the country's foreign exchange position amid efforts by the Central Bank of Nigeria (CBN) to stabilise the currency.

The naira traded at ₦1,346.79 to the dollar on November 6, 2026, compared with ₦1,436.74 recorded on the corresponding date in 2025, representing an appreciation of ₦89.95.

The improvement comes as Nigeria's foreign exchange reserves remain above $55bn, providing a buffer for external obligations and efforts to maintain stability in the currency market.

Data showed that the country's gross foreign exchange reserves stood at $55.133bn as of November 5, 2026.

The stronger naira could help reduce the cost of importing raw materials, machinery, pharmaceutical products and other goods priced in foreign currencies. It could also lower the naira cost of servicing dollar-denominated obligations for businesses.

However, the extent to which the appreciation translates into lower prices for consumers will depend on how quickly importers adjust their prices and whether the currency sustains its gains.

CBN Governor, Olayemi Cardoso, had said in July that the naira should remain market-driven and competitive rather than being artificially supported.

Speaking in Abuja, he reaffirmed the apex bank's commitment to maintaining a transparent and liquid foreign exchange market based on willing buyers and willing sellers.

Cardoso said the currency's value should reflect underlying economic fundamentals, including stronger oil and non-oil exports, increased foreign direct investment, improved domestic productivity and reduced dependence on imports.

He also noted that the foreign exchange market had become more functional and transparent, with daily transaction turnover sometimes exceeding $1bn.

The reserves position is expected to remain an important indicator for investors assessing Nigeria's external liquidity, currency stability and capacity to withstand foreign exchange pressures.