Currency posts second consecutive week of gains amid improved liquidity, investor confidence, and rising reserves…
The Naira extended its upward momentum in October, appreciating to ₦1,427.5 per dollar at the close of trading on Friday, October 31, 2025, according to official data published on the Central Bank of Nigeria (CBN) website.
This marks the second consecutive week of gains for the local currency, which strengthened from ₦1,452.5/$1 on Monday to ₦1,427.5/$1 on Friday, reflecting a sustained rally driven by improved market confidence and increased foreign exchange liquidity.
During the week, the Naira traded at ₦1,447/$1 on Tuesday, ₦1,445/$1 on Wednesday, and ₦1,431/$1 on Thursday, maintaining a consistent upward trajectory throughout the five-day trading window. The last recorded depreciation was on October 15, underscoring the ongoing positive trend.
Week-on-Week Performance Shows 1.9% Gain
On a week-on-week basis, the Naira appreciated by 1.9%, closing at ₦1,427.5/$1 compared to ₦1,455/$1 in the previous week. The figure also represents a significant rebound from ₦1,461/$1 recorded two weeks earlier, signaling a growing sense of stability in the foreign exchange market.
Analysts attribute the Naira’s performance to increased dollar inflows, enhanced CBN liquidity interventions, and strengthening investor confidence in the government’s ongoing monetary and fiscal reforms.
Foreign Reserves Climb to $43.17 Billion
Complementing the Naira’s appreciation, Nigeria’s foreign reserves rose to $43.17 billion, up from $42.8 billion recorded the previous week one of the highest levels seen in recent months.
Financial experts say the rise in reserves reflects a combination of rising oil revenues, increased diaspora remittances, and growing foreign investor inflows, buoyed by Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list.
“The combination of improved reserves, stronger inflows, and renewed policy discipline is clearly helping the Naira regain ground,” said Kitan Babajide, a Lagos-based financial analyst.
“However, sustaining these gains will depend on maintaining fiscal prudence, ensuring transparent FX management, and accelerating structural economic reforms.”
Experts Predict Stronger FX Stability
Muda Yusuf, economist and former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), said the Naira’s appreciation signals improved regulatory oversight and a strengthening macroeconomic outlook.
“The exit from the FATF grey list will boost FDI because of the elevated level of confidence in Nigeria,” Yusuf said. “If capital inflows improve, it will enhance the forex environment. When perception is positive, FDI is likely to improve, all other things being equal.”
Analysts believe the positive developments will enhance Nigeria’s access to global financial markets, ease correspondent banking restrictions, and facilitate smoother international transactions.
Cautious Optimism Ahead
With the Naira posting consistent gains and reserves climbing steadily, market watchers remain cautiously optimistic. Sustained fiscal discipline, transparent FX management, and structural reforms are expected to reinforce the local currency’s resilience in the weeks ahead.
Experts also cite rising oil revenues, improved remittances, and increased investor confidence as key factors supporting the currency’s ongoing rebound.
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