The naira has recorded its strongest performance in five months, appreciating to below ₦1,500 against the United States dollar in the Nigerian Foreign Exchange Market (NFEM). As of September 15, 2025, the local currency was quoted at ₦1,497.46/$1, reflecting an improvement from previous trading sessions and marking a significant boost in confidence in the economy.
The appreciation comes amid easing demand pressures, improved liquidity in the foreign exchange market, and steady growth in Nigeria’s external reserves. The country’s reserves currently stand at approximately $41.66 billion, providing a stronger buffer for currency stability and signaling a more resilient outlook for the financial system.
In the parallel market, trading remained relatively stable, with the dollar exchanging at around ₦1,518 for buying and ₦1,528 for selling in Lagos. This indicates a narrowing gap between the official and parallel market rates, a development that analysts have long argued is critical for enhancing transparency and improving investor confidence.
Year-to-date, the naira has gained about 2.9 percent, strengthening from ₦1,541.36/$1 at the beginning of 2025. The currency’s recovery follows sustained reforms in the foreign exchange sector, including efforts by the Central Bank of Nigeria (CBN) to unify exchange rates, improve market efficiency, and attract foreign investment.
The latest movement reflects renewed optimism in Nigeria’s economic fundamentals and could help ease inflationary pressures by reducing the cost of imports. Stakeholders have welcomed the appreciation, noting that continued stability in the forex market is essential for trade, investment, and overall economic growth.
