Nigeria’s local currency, the Naira, appreciated by N2.05k at the official foreign exchange market on Friday, closing at N1,547.36 to the dollar, a modest yet encouraging development that signals growing market stability amid ongoing forex and monetary reforms by the Central Bank of Nigeria (CBN).
According to official data released on the CBN website, this gain represents a 0.13% appreciation from the N1,549.41/$ recorded on Thursday, reflecting a trend of relative consistency and micro-recoveries for the naira over the trading week.
The local currency started the week on a strong footing, posting a 0.3% gain on Monday, when it traded at N1,544.62/$. It experienced a mild setback on Tuesday, depreciating by 0.04% to N1,545.26/$, but remained relatively stable throughout the week. On Wednesday and Thursday, the naira saw marginal declines to N1,549.20/$ and N1,549.41/$, respectively.
However, Friday’s gain of N2.05k helped the naira end the week on a stronger note, fueling optimism about the currency’s resilience amid sustained economic adjustments and increased forex liquidity efforts.
Analysts attribute the naira’s moderate recovery to the CBN’s continued intervention in the foreign exchange market and recent policy actions aimed at unifying exchange rates, curbing speculation, and improving forex supply through increased transparency in the official market.
In recent months, the apex bank under the leadership of CBN Governor Olayemi Cardoso has introduced a series of reforms including:
Encouraging diaspora remittances and non-oil export proceeds through official channels.
Clearing a backlog of verified forex demand.
Halting forex access for offshore investments by weak banks to prevent capital flight.
These policies have begun to show impact, especially in improving confidence among investors and exporters, while also reducing excessive reliance on the parallel market.
Financial experts maintain a cautiously optimistic stance, highlighting that while the gains are incremental, they indicate improved coordination between monetary and fiscal policy, as well as signs of restored investor confidence.
“Any consistent gain, even marginal, is a positive sign in this volatile period,” said Dr. Obinna Udeh, an economist at the Nigerian Economic Reform Forum. “The focus should remain on building a stable market structure and addressing inflationary pressures, which continue to weigh on consumer spending and currency valuation.”
Despite the recent appreciation, the naira still remains significantly weaker than it was a year ago, with external vulnerabilities and inflation still exerting downward pressure. The Nigerian economy continues to face challenges such as:
High import dependency.
Insecurity affecting agricultural and industrial output.
Ongoing pressure from global oil market volatility.
Moreover, fluctuations in global interest rates and capital inflows have also impacted liquidity, forcing Nigeria to double down on domestic resource mobilization and forex market discipline.
Market watchers believe that sustaining the naira’s gains will require:
Effective forex market regulation to deter speculation.
Support for local production to reduce import bills.
Increased transparency in CBN interventions to build investor trust.
As the second half of 2025 approaches, policymakers are expected to deepen reforms under the broader economic strategy of the Bola Tinubu-led administration, especially in harmonizing exchange rates, boosting FX inflow, and improving the country’s balance of payment position.