Nigeria’s currency, the naira, recorded a significant appreciation of about ₦54 against the U.S. dollar in October, buoyed by stronger export inflows and improved external reserves.

At the end of the month, the exchange rate in the Nigerian foreign exchange market closed at approximately ₦1,421 per dollar, compared with ₦1,475 per dollar at the end of September.

Analysts attributed the naira’s gain to a combination of factors, including a broad sell-off in the U.S. dollar index following global interest-rate cuts, as well as higher inflows from Nigeria’s hydrocarbon exports. Increased dollar revenues from international oil companies, reduced fuel import payments, and renewed interest from foreign portfolio investors in treasury instruments also supported the local currency.

During the final week of October, the exchange rate strengthened further, from about ₦1,465.29 per dollar at the start of the week to ₦1,457.96 by Friday, reflecting improved market liquidity and minimal intervention by the Central Bank of Nigeria (CBN).

Nigeria’s gross external reserves also rose by US$819 million in October, climbing to US$43.172 billion from US$42.353 billion at the end of September. Analysts say the increase enhances market stability and provides a positive outlook for the naira going into 2025.

Globally, the oil market experienced a mixed performance. The OPEC+ alliance signaled a planned output boost for December, heightening short-term supply expectations amid weak demand, particularly from China, where industrial activity contracted for a seventh straight month. Geopolitical tensions, including the Israel–Hamas conflict and Western sanctions on Russian oil firms, caused brief volatility, but steady Russian crude exports curbed fears of major supply disruptions.

Consequently, Brent crude fell by 5.2% month-on-month to about US$64.50 per barrel. By week’s end, however, oil prices rebounded: Brent gained US$4.65 (7.59%) to close at US$65.94 per barrel, while U.S. West Texas Intermediate (WTI) rose US$4.35 (7.61%) to US$61.50 per barrel.

Meanwhile, spot gold pared earlier losses after U.S. inflation data came in softer than expected, fueling speculation of an imminent Federal Reserve rate cut. Nonetheless, the metal still ended the week lower, down 3.24% to US$4,112.10 per ounce, with U.S. futures closing at US$4,137.80.