The Nigerian naira has continued to gain strength against the United States dollar, with significant appreciation recorded in both official and parallel foreign exchange markets. According to data from the Central Bank of Nigeria, the naira strengthened to 1,480.66 naira per dollar on Friday, representing a day-to-day gain of 7.6 naira.
In the parallel market, the naira also firmed up to 1,495 naira per dollar on Friday, from 1,497 naira per dollar on Thursday. The most notable gain occurred on Wednesday, when the naira appreciated sharply in the black market. On a week-on-week basis, the naira recorded gains of 7.24 naira and 27 naira at the official and parallel foreign exchange markets, respectively.
This appreciation is coinciding with an increase in Nigeria’s external reserves, which rose by 0.45 percent to $42.22 billion on Thursday, September 25, 2025. This represents a slight increase from the $42.03 billion recorded the previous Friday. The growth in external reserves is a positive indicator for the Nigerian economy, as it suggests an improvement in the country’s ability to meet its international payment obligations.
The naira’s appreciation against the dollar is a significant development, as it can impact the cost of imports and potentially influence inflation rates. A stronger naira can make imports cheaper, which can help to reduce the cost of living for Nigerian consumers. However, the impact of the naira’s appreciation on the broader economy will depend on various factors, including the sustainability of the gain and the response of economic agents to the new exchange rate.
The Central Bank of Nigeria’s efforts to stabilize the foreign exchange market and improve the supply of foreign exchange have been yielding positive results. The bank’s interventions in the foreign exchange market have helped to reduce the pressure on the naira and promote stability in the exchange rate. As the Nigerian economy continues to navigate the challenges of a global economic downturn, the stability of the exchange rate will be crucial in maintaining investor confidence and promoting economic growth.
