The Nigerian naira saw a slight appreciation against the US dollar in August 2025, supported by increased foreign exchange inflows and a rise in the country’s external reserves.
The local currency closed the month at ₦1,531.57 in the official foreign exchange market, representing a 0.14% gain from ₦1,533.74 at the beginning of the month.
In the parallel market, the naira strengthened by 0.8%, trading at ₦1,542 per dollar compared to ₦1,555 at the start of August.
Nigeria’s external reserves grew by $1.72 billion, reaching $41.26 billion by the end of the month, up from $39.54 billion on August 1. Central Bank of Nigeria Governor Olayemi Cardoso attributed the increase to a surge in diaspora remittances, which rose to $600 million over the past two months.
He projected that monthly remittances could reach at least $1 billion next year, contributing to a more diversified foreign exchange portfolio and reducing reliance on oil revenues.
Foreign exchange inflows into the country also rose by 24% in July 2025, reflecting improved investor sentiment. Non-bank corporates increasingly outpaced foreign portfolio investors in contributing to these inflows, indicating a shift toward more stable and sustainable sources of foreign exchange.
Total foreign exchange inflows for July were estimated at approximately $3.8 billion, up from $1.5 billion in June, signaling a positive trend in Nigeria’s economic outlook.
