Bureau De Change Operators and industry experts have attributed the impressive showing of the Nigerian currency in September to a mix of Central Bank of Nigeria (CBN) policy tightening, renewed investor confidence, and the growing role of fintech in deepening transparency and reducing speculative demand for foreign exchange.
Naira recorded its strongest stretch of performances in recent months in September 2025 — a period some currency traders and economists have described as a “Naira boom.”
Speaking with Nairametrics, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, described the month’s performance as remarkable.
“So, Naira performed better at N1,400/$1 from its lowest level in the region of N1,500/$1, propelled by several factors,” he said.
According to him, the improved performance was partly due to increased crude oil production, stronger investment in both upstream and downstream sectors, and tighter management of dollar demand.
“We no longer see a vibrant ‘black market’ for dollars. The demand for dollars has dropped significantly — both fictitious and speculative.
“People are no longer buying dollars just to hold. Many Nigerians now have naira liquidity, and fintech platforms have made transactions easier without the need for domiciliary accounts,” he explained.
BDCs laud CBN’s NBVN, NFIU
Gwadabe attributed part of the success to the CBN’s integration of fintech systems and the Non-Resident Bank Verification Number (NRBVN) framework, which has unified identity verification across the banking sector.
“The NBVN unified registration number now connects individuals’ BVNs, names, and corporate RC numbers. There’s even a portal capturing non-residents. These innovations are boosting compliance, transparency, and tax obligations under the new financial assets tax law,” he noted.
He added that Nigeria’s efforts to exit the Financial Action Task Force (FATF) grey list have also improved the country’s image among investors.
“Nigeria prepared seriously for the FATF assessment, and the verdict coming in October 2025 is expected to be positive. This will open up opportunities for foreign investors and international financial institutions,” he said, praising the Nigerian Financial Intelligence Unit (NFIU) and other stakeholders for their efforts.
“And like I’ve said, investment in crude oil – upstream and downstream, imagine now we have 1.8 million barrels. Import availability. We no longer see ‘black market’. It’s a good one.
“There is really low demand for the dollar. When you talk of demand, you talk of fictitious demand. You also talk of genuine demand for the dollar. By this, I mean, people are not buying dollars to keep.”
The ABCON president said higher oil output, now around 1.8 million barrels per day, coupled with increased revenue flows and high interest rates, have also helped stabilize the currency.
“These measures are improving investor confidence and reducing inflationary pressures. The government benefits the most, as the higher exchange rate still generates revenue while maintaining market stability,” Gwadabe said.
Other experts speak
Another BDC operator, Abubakar Ardo, said, “First of all, the CBN injected more dollars into the market through banks and BDCs. That move, I believe, helped reduce panic buying and hoarding.”
He added, “Another factor that appears to have helped is the rise in diaspora remittances. September is typically the back-to-school season, and many Nigerians abroad send money home to support their families and pay school fees. This increased dollar supply for both BDCs and commercial banks.”
An economist at the University of Abuja, Dr. Eugene Eke, said, “From my perspective, the naira’s relative strength in September 2025 can be attributed to a convergence of monetary, fiscal, and external factors that improved both foreign exchange liquidity and market confidence.”
He explained that closer coordination between the Ministry of Finance and the CBN helped align fiscal and monetary policy actions, thereby reducing uncertainty in the FX market.
“Statements from the Coordinating Minister of the Economy, Mr. Wale Edun, regarding improved TSA compliance and greater fiscal transparency also boosted investor sentiment,” he added. “The perception of a more disciplined fiscal environment helped reduce speculative attacks on the currency.”
Projections for October 2025
Analysts say the sustained implementation of fintech-enabled monitoring systems, consistent CBN liquidity injections, and rising oil output could keep the Naira stable through the last quarter of 2025, if policy discipline and investor confidence remain intact.
“October will be the real test,” Gwadabe concluded. “If these innovations and tight policies continue, the Naira’s recovery will not just be a one-month miracle but the start of a sustainable trend.”
What you should know
The Naira experienced its most stable trading period in months during September 2025, consistently staying below the N1,500 per dollar threshold for over two weeks.
According to the latest figures published on the Central Bank of Nigeria (CBN) website, the currency closed at N1,478/$1 on September 30, marking a significant rally from its opening rate of N1,527.9/$1 on September 1.
Despite January holding the record for the best monthly close this year, it is worth noting that most trading days that month still hovered above N1,500/$1. Only on January 30 and 31 did the Naira record N1,475/$1 and N1,493/$1, respectively.
In contrast, September offered a more sustained stretch of sub-N1,500/$1 trading, demonstrating its stability and resilience in the second half of the month.
Also, in September, the external reserves surpassed the $42 billion mark, rising to $42.3 billion as of September 29, 2025, the highest in over six years.
In September, CBN reduced the MPR by 50 basis points, lowering it from 27.5 percent to 27 percent.
Alongside the MPR cut, the MPC narrowed the asymmetric corridor around the benchmark rate to +250 and -250 basis points, from the previous +500/-100 basis points.
It is basically Dangote Refinery, everything else is contributing peanuts to the strengthening of the Naira. The magic of tyring your biggest import to your largest export is the magic Dangote has done for Nigeria.
Hopefully we see more of that appreciation this October.