Abuja, Nigeria | September 8, 2025
The Nigerian naira has climbed to its strongest level in six months, bolstered by improved dollar inflows, tighter monetary policies, and renewed investor confidence in the country’s foreign exchange market.
Traders on Monday confirmed that the local currency appreciated significantly at both the official and parallel markets, reflecting steady interventions by the Central Bank of Nigeria (CBN) and increased foreign portfolio inflows. Data from FMDQ showed that total inflows into the Nigerian Foreign Exchange Market reached $2.80 billion in August, underscoring sustained momentum.
Analysts attribute the rebound to stronger oil receipts, a more transparent FX regime, and growing domestic support. They predict that the naira could maintain its upward trajectory in the coming weeks if reforms remain consistent and external reserves continue to build.
Market watchers, however, cautioned that lingering inflationary pressures, high import demand, and global oil price fluctuations could still pose risks to currency stability.
The CBN has reiterated its commitment to ensuring exchange rate stability while deepening reforms that encourage investment, reduce speculative demand, and strengthen the economy.
