A review of the Central Bank of Nigeria's (CBN) exchange rate data for the period between Friday, May 30, and June 5, 2025, reveals a significant gain at the official foreign exchange rate market. The naira firmed up by N32.38, or 2.04 percent, moving from N1,585.50 per dollar to N1,553.12 per dollar.
This upward trend was not confined to the official market alone. The naira also recorded appreciation in the parallel market, commonly known as the black market. Trading concluded on Thursday with the naira at N1,590 per dollar, an gain of N35 from the N1,625 exchanged on May 30, 2025.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, recently linked the naira's newfound stability to reforms implemented by the apex bank. He further asserted that the naira has evolved into a competitive payment system within the West African region, hinting at its growing influence and acceptance in regional trade.
However, despite these gains, not all economic analysts are convinced of the naira's true value. Bismark Rewane, the managing director of Financial Derivatives Company, speaking at a recent Lagos Business School breakfast club event, maintained that the naira remains significantly undervalued, by an estimated 26.82 percent. This perspective suggests that while recent appreciation is positive, the currency may still have considerable ground to cover to reach its equilibrium value.