The Nigerian naira has experienced a significant boost in the official foreign exchange market, reaching its highest value against the US dollar in recent weeks. On Monday, May 13, 2025, the naira closed at N1,600.44 to the dollar, marking an appreciation from its previous rate of N1,606.15 recorded at the close of trading on Friday, May 9, 2025.
This N5.71 increase represents the most substantial gain the local currency has seen since April 30, 2025, when the naira gained N3.02 to close at N1,596.68 to the dollar. The recent surge is considered a positive development, as the naira had faced several weeks of depreciation before this improvement.
This gain comes after several interventions by the Central Bank of Nigeria (CBN) aimed at stabilizing the exchange rate. In the official market, the naira’s movement is closely monitored by financial analysts, as it indicates the effectiveness of the CBN’s monetary policies and forex management strategies. The recent appreciation could signal a potential shift in the exchange rate trajectory, though experts caution that further stability is needed.
Despite the positive movement in the official market, the naira’s value in the parallel or black market remained unchanged. According to market reports from independent traders, the naira is still being exchanged at N1,630 per dollar in the parallel market, the same rate observed on Friday. This discrepancy highlights the ongoing challenges in the forex market, with a clear divide between the official and black market rates.
The naira has witnessed considerable fluctuations in recent months, despite multiple interventions by the CBN, aimed at stabilizing its value. While the official market shows signs of stabilization, the parallel market continues to reflect the difficulties faced by the average Nigerian in accessing foreign exchange at the official rate.
In particular, the CBN’s attempts to regulate the market by offering dollar injections have not always been able to meet the demand for foreign currency, contributing to the divergence between the official and black market rates.
Analysts believe that the recent appreciation of the naira could be a result of successful monetary interventions by the CBN, particularly its efforts to limit dollar scarcity and increase liquidity in the official market. However, the resilience of the naira in the official market is yet to be fully tested, and the outlook remains cautious due to potential volatility in the global economy and domestic market conditions.
The federal government’s efforts to address Nigeria’s long-standing foreign exchange challenges through policies like the introduction of a unified exchange rate and the promotion of non-oil exports could also have contributed to the recent upward movement of the naira. However, the real test will be the ability of the naira to maintain this upward momentum amid global uncertainties.
Despite the recent rise, questions remain about the sustainability of the naira’s strength. Will the Central Bank’s interventions prove to be enough to stabilize the local currency in the long term, or is this just a temporary blip before further challenges arise?
One thing is clear: both market participants and the Nigerian public are closely watching these developments, as a stable naira is crucial for economic growth, especially with rising import costs and the impact on businesses.
For now, Nigerians and businesses alike will hope that the naira’s recent gains reflect a trend of continued improvement. However, time will tell if the currency can maintain this level of stability in the face of ongoing challenges.