The Nigerian Naira closed at N1,455 to the U.S. dollar and kept growing throughout 2025 at the Nigerian Foreign Exchange Market.
From N1,460 to N1,470 per dollar, parallel market rates showed more stability following months of uncertainty.
Analysts say that the main factors driving the comeback are a decline in speculative trading, increased foreign reserves at $43 billion, and continuing Central Bank of Nigeria (CBN) changes. These projects have helped to rebuild market confidence and reduce the severe swings that characterized the year before.
The News Chronicle learnt that the naira’s revival has been much aided by fresh interest from foreign investors. While authorized dealer interventions have offered liquidity, International Oil Companies (IOCs) and Foreign Portfolio Investors (FPIs) have seen rising inflows. Investors seem more ready to come back as Nigeria shows signs of macroeconomic stability, particularly now that the CBN is putting into place a more open foreign exchange system.
CBN Governor Yemi Cardoso recently affirmed that external reserves now offer more than eight months of import cover, in contrast to the $40.51 billion registered at the end of July. He also said that the second quarter of 2025 saw a $5.28 billion surplus in the current account balance, up from $2.85 billion in the prior quarter. This advancement has further bolstered investor sentiment and reinforced the currency.
As markets responded to dismal economic numbers and a lengthy U.S. government shutdown, the U.S. Dollar Index fell on the world front to about 97.9. With a decrease of 32,000 in September, private-sector jobs in the United States elevated hopes for further Federal Reserve interest rate reductions. Many analysts believe this pessimistic dollar perspective could indirectly support developing country currencies such as the naira.
Nigeria’s future capacity to maintain its momentum will be contingent on ongoing fiscal discipline, steady crude oil revenues, and successful execution of FX changes. Should these conditions hold, the naira might keep making gains and establish Nigeria as a more appealing investment destination in the next few months.
