Nigeria’s Naira Sustains Appreciation Against the Dollar, Ending the Week on a Bullish Note

In a positive turn of events for Nigeria’s economy, the country’s currency, the naira, has continued to appreciate against the US dollar at the official foreign exchange market, ending the week on a strong note. According to data from the Central Bank of Nigeria (CBN), the naira firmed up slightly to N1,535.04 against the dollar on Friday, representing a N0.74 gain on a day-to-day basis.

This sustained appreciation is a welcome development for the country, which has been working to stabilize its currency and improve its economic outlook. However, it’s worth noting that the naira remained flat at N1,550 on the black market, the same rate recorded the previous day.

A week-on-week analysis of the naira’s performance shows that it lost N2.53, or 0.17 percent, at the official market compared to N1,532.51 traded on August 15, 2025. On the other hand, the naira appreciated by N10, or 0.65 percent, at the black market to N1,550 per dollar, up from N1,560 last week Friday.

The naira’s appreciation is closely tied to the country’s growing external reserves, which have continued to surge in recent weeks. As of August 21, 2025, Nigeria’s external reserves stood at $41.08 billion, according to CBN data. This increase in reserves is a positive indicator of the country’s economic health and suggests that the naira’s appreciation is likely to continue in the short term.

The sustained appreciation of the naira against the dollar is a positive development for Nigeria’s economy, as it suggests that the country’s economic policies are yielding results. The growth in external reserves is also a welcome development, as it provides a cushion against economic shocks and helps to stabilize the currency. As the country continues to work towards stabilizing its economy, the appreciation of the naira is a step in the right direction.