The Nigerian naira made a strong comeback on Thursday, appreciating to N1,455.23 per dollar at the official foreign exchange window, marking its strongest performance of 2025 and a sign of renewed confidence in the country’s FX regime.
Data from the FMDQ Securities Exchange showed that the local currency gained 1.36 percent compared to the N1,475.34/$ recorded on September 30. This is the first time since May 2024 that the naira has broken into the N1,400/$ range at the official market.
The rebound comes months after the Central Bank of Nigeria (CBN) launched the Electronic Foreign Exchange Matching System (EFEMS) in December 2024, aimed at enhancing price discovery and transparency in the FX market. At the time of its launch, the naira traded around N1,660/$, signaling a significant shift since then.
Naira Also Gains in Parallel Market
The local currency also gained strength on the streets, with the parallel market rate improving to N1,480/$, compared to N1,485/$ on September 30. This marks the best rate in 2025 at the informal FX market, further narrowing the gap between official and unofficial market rates.
President Bola Tinubu, in his October 1 Independence Day speech, highlighted the improving currency performance as a sign of economic progress.
“The naira has stabilised from the turbulence and volatility witnessed in 2023 and 2024,” Tinubu said, adding that recent FX reforms, increased foreign remittances, and capital inflows have contributed to the currency’s recovery.
The latest appreciation aligns with projections made by Chairman of BUA Group Abdul Samad Rabiu, who last week forecast that the naira could strengthen further to between N1,300 and N1,400 per dollar by the end of the year.
Currency analysts believe that continued FX inflows, reduced market speculation, and effective CBN interventions could support a sustained naira recovery in Q4 2025.
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