Nigeria’s local currency, the Naira, has recorded its highest appreciation of the year against the United States dollar at the official foreign exchange market, buoyed by a steady rise in the nation’s external reserves.
According to data released by the Central Bank of Nigeria (CBN), the Naira appreciated to N1,484.14/$1 on Tuesday, strengthening from N1,497.47/$1 traded the previous day. This represents a gain of N13.33, the sharpest single-day appreciation so far in 2025.
The improvement marks the strongest performance of the currency since February 2025, signaling renewed confidence in the foreign exchange market. Market watchers attribute the uptrend partly to increasing foreign inflows and the CBN’s tighter monetary policies aimed at stabilizing the currency.
Meanwhile, at the parallel (black) market, the Naira held steady at N1,537/$1, the same level it closed on Monday. Analysts say the stability in the unofficial market is helping to narrow the gap between the two markets, reducing speculative pressure on the local currency.
The CBN report also confirmed that Nigeria’s external reserves climbed to $41.84 billion as of September 15, compared to $41.70 billion recorded three days earlier, on September 12. This rise in reserves has been a key factor in boosting market confidence and strengthening the Naira’s outlook.
Economic experts note that higher reserves provide the CBN with more room to defend the Naira and sustain liquidity in the foreign exchange market. They also suggest that the currency’s rebound could ease import costs, reduce inflationary pressures, and create a more stable environment for businesses.
The latest appreciation comes at a time when the Federal Government has intensified efforts to attract foreign direct investment and improve Nigeria’s balance of payments. The combination of rising reserves, tighter fiscal measures, and improving investor sentiment is seen as critical to sustaining the Naira’s upward trend.
While the outlook remains cautiously optimistic, analysts warn that maintaining the momentum will require consistent policy discipline, diversification of foreign exchange sources, and further confidence-building measures to reduce reliance on oil revenues and stabilize Nigeria’s external sector.
