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 per dollar on Friday, a day‑to‑day gain of 7.6 naira. In the parallel market, it firmed to 1,495 per dollar on Friday, down from 1,497 the previous day. 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 in the official market and 27 naira in the parallel market. This appreciation coincides with an increase in Nigeria’s external reserves, which rose by 0.45 percent to $42.22 billion on Thursday, September 25, 2025, up from $42.03 billion the previous Friday. The growth in reserves is a positive indicator for the economy, suggesting an improved ability to meet international payment obligations.
A stronger naira can make imports cheaper, potentially reducing the cost of living for Nigerian consumers and influencing inflation rates. However, the broader impact on the economy will depend on the sustainability of the gain and how economic agents respond to the new exchange rate. The Central Bank of Nigeria’s efforts to stabilise the foreign‑exchange market and improve foreign‑exchange supply appear to be yielding positive results. Its interventions have helped reduce pressure on the naira and promote exchange‑rate stability.
As Nigeria navigates the challenges of a global economic downturn, maintaining a stable exchange rate will be crucial for preserving investor confidence and supporting economic growth.
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