The naira continued to strengthen yesterday, closing at N1,480 per dollar at the official foreign exchange market.
Data from the Central Bank of Nigeria (CBN) showed that the naira has been gaining since early September when it traded at N1,526.09 per dollar.
The parallel market also reflected the trend, with the naira exchanging between N1,490 and N1,495 this week.
The improvement is linked to rising demand for the naira, reduced speculation, and higher foreign reserves, now at $43.05 billion.
CBN Governor, Olayemi Cardoso, said external reserves stood at $43.05 billion on September 11, up from $40.51 billion in July, enough to cover 8.28 months of imports.
He also announced that Nigeria’s current account balance recorded a $5.28 billion surplus in the second quarter of 2025, compared to $2.85 billion in the first quarter.
Analysts believe the reforms by the CBN are bringing stability to the forex market, improving transparency, and giving businesses better access to dollars.
According to Commercio Partners, the rally is supported by stronger reserves, reduced speculative trading, and increased confidence in the economy.
Ifeanyi Ubah, Head of Research at Commercio Partners, noted that oil revenue and growing external reserves are helping the naira gain a more solid footing than in past periods of volatility.
However, some experts warned that the positive trend can only last if the government maintains economic discipline, increases crude oil output, and diversifies export earnings.
The Association of Bureaux De Change Operators of Nigeria (ABCON) President, Aminu Gwadabe, praised the CBN’s policies, saying they show Cardoso’s commitment to ensuring more forex flows into the economy.
He also highlighted diaspora remittances—estimated at $23 billion annually—as a reliable source of forex.
Since taking office in October 2023, Cardoso has focused on reforms to strengthen Nigeria’s economic stability.
The CBN has unified the exchange rate system, cleared a backlog of over $7 billion in unpaid forex obligations, and introduced an electronic FX matching system to improve transparency.
The bank is also working to attract more dollar inflows by encouraging diaspora remittances, licensing new money transfer operators, and promoting a willing-buyer, willing-seller model.
Experts added that a stronger naira helps reduce the cost of imports since duties and taxes are often calculated using the prevailing exchange rate.