Lagos, Nigeria | September 17, 2025
The naira continued its upward push on Tuesday, strengthening further at the official market as analysts projected the currency could test the ₦1,440/$ level in the coming days.
Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) showed the naira closing at ₦1,484 per dollar, building on a recent run of resilience that has been supported by improved foreign exchange inflows and the dollar’s broader weakness across global markets.
The trend mirrors gains by other African currencies such as the Ghanaian cedi and South African rand, both of which capitalised on a slowdown in U.S. economic momentum and expectations of a softer monetary policy stance by the Federal Reserve.
Currency dealers attributed the naira’s performance to a combination of factors, including increased foreign portfolio inflows, rising oil receipts, and interventions by the Central Bank of Nigeria (CBN) aimed at improving market liquidity.
Market analysts believe sustained dollar inflows could push the local currency closer to the ₦1,440/$ threshold, a level not seen in months. However, they cautioned that structural challenges, including Nigeria’s reliance on imports and volatile oil earnings, still pose risks to long-term stability.
The CBN has reiterated its commitment to exchange rate reforms, insisting that the market-driven approach remains the best pathway to achieving balance between supply and demand in the forex market.
With Nigeria’s external reserves inching higher and investor sentiment showing signs of recovery, traders say the coming weeks will be crucial in determining whether the naira can maintain its momentum against the greenback.
