The Naira closed the week stronger, appreciating to N1,458 per US dollar on Friday its best performance since 2024 as the Central Bank of Nigeria (CBN) intensified efforts to stabilize the foreign exchange market and sustain recent monetary gains.
According to official data from the CBN website, the Naira began the week at N1,464/$1 on Monday before depreciating slightly to N1,472/$1 on Tuesday.
The currency regained some strength midweek, appreciating to N1,469/$1 on Wednesday and N1,464/$1 on Thursday.
The currency sustained its gains on Friday, closing at N1,458/$1 the strongest position since 2024, according to CBN data.
At the parallel market, the naira traded between N1,495 and N1,505/$1, showing only a marginal premium over the official rate and suggesting limited arbitrage opportunities between both markets.
Week-on-week performance
On a week-on-week basis, the Naira appreciated by N11, representing a 1.1% appreciation from last week’s closing rate of N1,469/$1.
The data shows that the Naira traded at N1,478 per dollar last week Tuesday, before appreciating slightly to N1,464.85 per dollar on Thursday.
However, the currency weakened again the following day, closing at N1,469 per dollar on October 3, 2025.
Foreign reserves performance
The external reserves rose to $42.5 billion from $42.4 billion last week.
According to the CBN data, the reserve has been on an upward swing since the 14th of July 2025.
Some currency traders attribute the naira’s recent stability to the CBN’s sustained intervention in the foreign exchange market, alongside measures aimed at curbing speculative trading and boosting dollar inflows.
Speaking with Nairametrics, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe attributed this to increased crude oil production, stronger investment in both upstream and downstream sectors, and tighter management of dollar demand.
In his 65th Independence Day address, President Bola Tinubu restated his administration’s commitment to sustaining forex reforms. He said, “The Naira has stabilised from the turbulence and volatility witnessed in 2023 and 2024. The gap between the official rate and the unofficial market has reduced substantially, following FX reforms and fresh capital and remittance inflows. The multiple exchange rates, which fostered corruption and arbitrage, are now part of history. Additionally, our currency rate against the dollar is no longer determined by fluctuations in crude oil prices.”
Also speaking in Uyo, Akwa Ibom State, on Tuesday, the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso — represented by Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department — said that some of the bank’s recent monetary policies were beginning to yield positive results, evident in the gradual easing of inflation and the relative stability of the foreign exchange market.
According to him, the BMatch System for forex trading has enhanced market integrity and facilitated more transparent price discovery. He added that the initiative is expected to promote uniformity in trading activities and ensure seamless operations among market participants.
What you should know
In December 2024, President Tinubu, during his budget presentation speech, said the 2025 budget was based on the projections that inflation would decline from the current rate of 34.6 per cent to 15 per cent, while the exchange rate would improve from approximately 1,700 naira per US dollar to 1,500 naira.
Several experts expressed doubts about President Tinubu achieving the targets.
