The Nigerian naira closed the week on a positive trajectory, maintaining its appreciation against the United States dollar at the official foreign exchange market. Latest figures from the Central Bank of Nigeria (CBN) revealed that the naira firmed slightly to ₦1,535.04 per dollar on Friday, up from ₦1,535.78 on Thursday, signaling a modest but steady upward movement.
This represents a ₦0.74 daily gain, reinforcing optimism that Nigeria’s currency is gradually stabilizing amid ongoing reforms by the CBN and supportive macroeconomic indicators.
While the official market reflected cautious optimism, trading at ₦1,535.04/$1, the black market remained largely unchanged.
The parallel market rate closed the week flat at ₦1,550/$1, the same level recorded on Thursday.
A week-on-week analysis, however, paints a mixed picture. Compared to its trading value of ₦1,532.51/$1 on August 15, 2025, the naira weakened slightly by ₦2.53 (0.17%) at the official market.
In contrast, the parallel market witnessed a gain as the naira appreciated by ₦10 (0.65%), strengthening from last week’s ₦1,560/$1 to this week’s ₦1,550/$1.
One of the key drivers of the cautious optimism is Nigeria’s growing external reserves. According to CBN data, the reserves rose to $41.08 billion as of August 21, 2025, reflecting improved foreign exchange inflows.
Analysts say this buffer provides the apex bank with greater capacity to defend the naira and maintain liquidity in the forex market.
Financial experts believe that if reserves continue to rise, investor confidence will strengthen, which could help narrow the gap between the official and black-market exchange rates.
Economic analysts and currency traders have attributed the naira’s recent performance to a combination of factors, including:
CBN’s sustained market interventions through dollar supply and policy adjustments.
Improved oil revenue following stable crude oil prices and enhanced remittances.
Rising investor inflows tied to Nigeria’s growing reserves and fiscal reforms.
Dr. Musa Ibrahim, a financial economist based in Abuja, explained that while the gains remain marginal, they are significant in terms of signaling stability.
“The naira’s resilience this week shows that market sentiment is gradually shifting.
The external reserves growth is a big plus because it provides assurance to investors and reduces speculative attacks on the currency,” he said.
For Nigerian businesses and households, the slight appreciation of the naira offers a glimmer of relief, particularly for import-dependent sectors.
If sustained, the trend could help moderate the cost of imports, reduce inflationary pressures, and improve purchasing power.
However, experts caution that consistent structural reforms, including boosting local production, diversifying exports, and tightening monetary policy, remain critical to achieving long-term naira stability.
Looking ahead, market watchers predict cautious trading in the new week, with the naira expected to hover within a narrow band at both official and parallel markets.
The direction of movement will likely depend on CBN interventions, global oil prices, and foreign inflows.
For now, the naira’s modest appreciation, supported by rising reserves, signals a hopeful end to the week for Africa’s largest economy.