Naira Gains N54/$ as External Reserves Rise by $820m in Oct.
The naira gained about N54 against the US dollar at the Nigerian foreign exchange market (NFEM) in October, supported by offshore investors’ FX supply, exporters’ inflows and rising external reserves.
The local currency closed the month at N1421 per dollar despite minimal FX intervention by the Central Bank, from N1,475 per dollar at the official window on September 30.
Most analysts said the local currency leveraged a broader selloff in the dollar index as global Central Banks launched another round of rate cuts.
Nigeria’s FX receipts from hydrocarbon sales helped the local currency strengthen with international oil companies’ US dollar volume and lower fuel import payments.
Foreign portfolio investors’ participation in OMO instruments helped sustain moderate appreciation in the naira last week, with the exchange rate strengthening from ₦1,465.29/$ at the start of the week to ₦1,457.96/$ by Friday.
Improved liquidity and stronger midweek offshore inflows further supported this trend, while limited CBN intervention kept market activity balanced.
In October, gross balance in the nation’s external reserves increased by $819 million to close at $43.172 billion from $42.353 billion at the end of September, 2025.
Analysts maintained positive outlook for the local currency in 2025 as rising foreign reserves reinforce market stability and the naira’s steady performance.
The global oil market was shaped by a mix of bearish and transient bullish forces last month. At the beginning of the month, the OPEC+ cartel signalled plans to boost output in December, raising expectations of increased near-term supply.
At the same time, demand remained weak, particularly from China, where industrial activity contracted for the 7th month, with manufacturing PMI clearing yet again below the 50.1 points expansion baseline.
Geopolitical and trade tensions, including the Israel–Hamas conflict and Western sanctions on Russia’s oil majors, Rosneft and Lukoil, injected short-lived volatility but failed to offer lasting price support.
Despite these sanctions, Russian crude exports persisted, dampening expectations of meaningful supply disruptions. Overall, the bearish combination of rising supply expectations, swelling inventories, and subdued demand outweighed geopolitical risks, pushing Brent crude price lower by 5.2% m/m to $64.5/bbl.
Last week, Oil prices rebounded from last week’s declines, although they closed lower on Friday as scepticism emerged regarding the Trump administration’s commitment to sanctions on Russia’s two largest oil companies amid the war in Ukraine.
Brent crude rose by $4.65 or +7.59%, to $65.94 per barrel, while U.S. West Texas Intermediate WTI gained $4.35 (+7.61%) to close at $61.50.
Gold pared losses on Friday after slightly softer-than-expected U.S. inflation data reinforced expectations that the Federal Reserve may cut interest rates next week, although the metal was still set for its first weekly decline in 10 weeks.
Spot gold fell 3.24% to $4,112.10 per ounce, while U.S. gold futures decreased 1.79% to settle at $4,137.80. # Naira Gains N54/$ as External Reserves Rise by $820m Naira Climbs to N1475, FX Inflow Rises to $981m
