Nigeria’s currency is gradually regaining strength, with the Naira recording steady improvements against the United States dollar across both official and parallel foreign exchange markets.
The Naira traded around N1,441.5 to the dollar at the Nigerian Foreign Exchange Market, while the informal market quoted between N1,435 and N1,450.
The latest figures show a 1.7 percent rise over the past month and a significant 13.5 percent increase compared to the same period last year.
Having appreciated by around 6.76 percent in the first eleven months of 2025, the Naira has partially reversed some of the sharp devaluation observed between 2023 and 2024.
Provided favorable policies and consistent market circumstances remain, analysts see the short-term forecast as steady with a slight upward trend.
A major driver of recent gains is Nigeria’s exit from the Financial Action Task Force grey list. The development ignited renewed investor confidence, strengthened the nation’s reserves and pushed the Naira to a ten-month high of N1,444.4 in the official market.
The News Chronicle learned that the delisting has reduced transaction friction for regional financial operators and opened fresh pathways for investment flows, particularly from international partners and commercial bank clients.
The FATF grey list had previously identified countries with strategic weaknesses in tackling money laundering and terrorist financing. Nigeria, alongside South Africa, Burkina Faso and Mozambique, met the required conditions for removal, improving their reputation with global financial institutions.
Meanwhile, coordinated measures by the Central Bank of Nigeria continue to stabilize the economy. Greater monetary flexibility and liquidity injections have reduced the distance between formal and parallel exchange rates.
Rising crude oil prices, high remittance inflows, and better world risk profile are also assisting the currency.
Still, difficulties abound. Presently around 20.1 percent, inflation keeps putting purchasing power under stress and could boost demand for the dollar. Consistent import responsibilities, education-related payments overseas, and debt servicing may produce short-term discrepancies in supply and demand.
Additionally, movements in important world currencies like the British pound and US dollar could indirectly affect the performance of the Naira as global economies change.
