The Nigerian naira strengthened markedly in 2025, gaining nearly N 100 against the US dollar. By December 31, 2025, the currency closed at N 1,435.76 per dollar, an improvement from the N 1,535 level recorded at the end of 2024. This appreciation represents an annual gain of 6.68 percent.
Nigeria’s foreign reserves also rose significantly, reaching $45.5 billion on December 30, 2025, up from $40.9 billion a year earlier—an 11.05 percent increase. The combined rise in the naira’s value and the growth in reserves suggest a gradual recovery after the 40.9 percent decline the currency suffered in 2024.
The Central Bank of Nigeria attributes this positive trend to policy and institutional reforms, as well as stable crude‑oil prices that have supported economic growth. In its 2026 Economic Outlook, the bank noted that fiscal space improved in 2025 because of these reforms and the steadiness of oil prices, which are crucial for a country heavily reliant on oil exports for revenue.
A stronger naira can lower the cost of imports, helping to curb inflation, while larger foreign reserves provide a buffer against external shocks and bolster the currency during periods of uncertainty. These developments are a welcome sign after the challenges of 2024. Looking ahead to 2026, continued policy and institutional reforms, together with stable oil prices, will be essential for sustaining the naira’s recovery and supporting broader economic growth.
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