The Nigerian naira has recorded its highest value since the beginning of the year, trading at ₦1,421.73 per U.S. dollar in the official foreign exchange market. The development marks a notable strengthening of the local currency amid renewed investor confidence and improved foreign exchange supply.
According to data from the FMDQ Exchange, the naira appreciated by 2.48% week-on-week, supported largely by increased inflows from portfolio investors who have shown renewed interest in Nigeria’s financial markets. The positive movement is being attributed to recent policy adjustments by the Central Bank of Nigeria (CBN), aimed at improving liquidity and transparency within the forex ecosystem.
Before the currency was floated in June 2023, Nigeria maintained a dual exchange rate regime, with a sharp disparity between the official and parallel market rates. The liberalization of the forex market has since narrowed that gap, allowing market forces to play a greater role in determining the value of the naira.
Further boosting optimism, Nigeria’s foreign reserves rose by $820 million between September and October 2025, reflecting improved dollar inflows from exports, remittances, and investor participation. Analysts suggest that sustained growth in reserves could provide a stronger buffer for the naira in the months ahead, especially as the CBN continues efforts to stabilize the market and attract long-term investment.
The recent rally in the naira underscores growing confidence in Nigeria’s monetary policy direction, even as stakeholders call for consistency in reforms to ensure lasting currency stability.
