The Naira ended the week on a high note, appreciating to ₦1,458 per U.S. dollar on Friday — its strongest performance since 2024. The rally comes as the Central Bank of Nigeria (CBN) continues to intensify market interventions aimed at stabilizing the foreign exchange (FX) market and sustaining monetary gains achieved in recent months.
According to data published on the CBN’s official website, the Naira opened the week at ₦1,464/$1 on Monday, briefly dipped to ₦1,472/$1 on Tuesday, then strengthened midweek to ₦1,469/$1 on Wednesday and ₦1,464/$1 on Thursday. By Friday, it closed at ₦1,458/$1, reflecting a steady recovery trend.
Narrow Gap Between Official and Parallel Markets
At the parallel market, the Naira traded between ₦1,495 and ₦1,505 per dollar, indicating a small margin from the official rate. Analysts noted that this narrow gap points to reduced arbitrage opportunities, suggesting improved alignment between both market segments — a key policy goal of the CBN.
Week-on-Week Gains
On a week-on-week basis, the Naira appreciated by ₦11, representing a 1.1% gain compared to last week’s close of ₦1,469/$1.
Last week, the local currency traded at ₦1,478/$1 on Tuesday, appreciated slightly to ₦1,464.85/$1 on Thursday, and then weakened to ₦1,469/$1 by the week’s end. The rebound in the latest trading sessions signals growing stability in the FX market.
Foreign Reserves See Modest Growth
Nigeria’s external reserves also recorded a slight increase, rising from $42.4 billion to $42.5 billion over the week. CBN data shows that reserves have been on an upward trajectory since July 14, 2025, boosted by improved oil export receipts and inflows from investors and development partners.
Currency dealers credit the Naira’s recovery to the CBN’s tighter FX management, active market interventions, and continued efforts to discourage speculative trading.
Expert Insights
President of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, told Nairametrics that the strengthening of the Naira is linked to increased crude oil production, better foreign investment inflows, and the CBN’s firm stance on managing dollar demand.
“We’re seeing stronger fundamentals and better coordination between fiscal and monetary policies,” Gwadabe said. “This is restoring confidence and attracting more inflows.”
CBN and Federal Government Maintain Optimism
During a recent address in Uyo, the CBN Governor, Olayemi Cardoso — represented by Hakama Sidi Ali, Acting Director of Corporate Communications — said that ongoing reforms were producing visible results.
“We are seeing gradual inflation moderation and improved FX stability,” he noted, adding that the new BMatch System for forex trading has enhanced market transparency and uniformity across trading platforms.
President Bola Tinubu, in his 65th Independence Day address, also reaffirmed his government’s commitment to maintaining FX reforms. He highlighted that the gap between the official and parallel market rates has narrowed substantially, eliminating multiple exchange windows and strengthening market confidence.
Outlook
Despite earlier skepticism from some economists about the administration’s ambitious FX and inflation targets, the Naira’s current trajectory suggests that ongoing reforms may be taking hold.
Tinubu’s 2025 budget projections anticipated a reduction in inflation from 34.6% to 15% and an exchange rate improvement to around ₦1,500/$1 — benchmarks that now appear increasingly achievable if current trends persist.
