Nigeria’s currency, the naira, appreciated significantly against the United States dollar on Monday at the official foreign exchange market. According to data from the Central Bank of Nigeria, the naira strengthened to 1,476.35 per dollar, up from 1,480.66 on Friday last week. This represents a gain of 4.31 naira against the dollar.
The naira’s improvement at the official market was not mirrored at the black market, where it remained stable at 1,495 per dollar on Monday, unchanged from the previous week’s close. Despite the difference in exchange rates between the two markets, the naira’s overall stability across foreign exchange markets is notable.
The uptrend in the naira’s value is likely linked to the sustained increase in Nigeria’s external reserves, which stood at $42.26 billion as of September 26, 2025. A rise in external reserves can positively impact a country’s currency by increasing investor confidence and reducing pressure on the exchange rate.
In recent times, the naira has experienced fluctuations in value due to various economic factors. However, the current appreciation suggests a degree of stability in the foreign exchange market. The Central Bank of Nigeria’s efforts to manage the currency and maintain a stable exchange rate have been crucial in this regard.
The stability of the naira is important for Nigeria’s economy, as it can impact inflation, trade, and investment. A stable currency can also boost investor confidence and attract foreign investment, which is essential for economic growth. As the global economy continues to evolve, Nigeria’s currency market will likely remain subject to various factors, including changes in global demand, trade policies, and economic trends.
The naira’s current appreciation against the US dollar is a positive development for Nigeria’s economy. As the country continues to navigate the complexities of the global economy, maintaining a stable exchange rate will be essential for promoting economic growth and development. With the external reserves at a significant level, Nigeria is well-positioned to manage its currency and maintain economic stability in the face of global uncertainties.
