Abuja — September 1, 2025
The naira recorded further appreciation on Monday as Nigeria’s foreign reserves rose on the back of increased capital inflows, offering fresh relief to the foreign exchange market.
According to market data, the local currency strengthened against the dollar in both official and parallel markets, buoyed by renewed investor confidence and sustained interventions by the Central Bank of Nigeria (CBN). Analysts link the development to rising portfolio and foreign direct investments, as well as improved diaspora remittances.
The uptick in reserves has also provided the CBN with greater liquidity to intervene in the market, curbing volatility and ensuring a steadier supply of foreign exchange to importers and businesses.
Financial experts say the positive trend reflects growing optimism around Nigeria’s economic reforms, especially fiscal consolidation efforts, improved crude oil earnings, and initiatives to diversify capital inflows.
Traders, however, cautioned that sustaining the naira’s momentum will require consistent policy clarity, improved productivity, and curbing speculative activities in the forex market.
With reserves now on a growth path and capital inflows rising, market watchers expect the naira to maintain relative stability in the coming weeks, provided global oil prices remain supportive and domestic reforms stay on track.