Between Monday and Friday, the naira appreciated from ₦1,452.5/$1 to ₦1,427.5/$1, trading at ₦1,447/$1 on Tuesday, ₦1,445/$1 on Wednesday, and ₦1,431/$1 on Thursday. The consistent rally reflects a renewed sense of stability driven by improved market liquidity, increased dollar inflows, and the impact of ongoing monetary reforms.
The last recorded depreciation occurred on October 15, highlighting the durability of the naira’s recent performance.
Week-on-Week Performance
On a week-on-week basis, the currency gained 1.9 percent, strengthening from ₦1,455/$1 the previous week to ₦1,427.5/$1. It also represents a more pronounced rebound from ₦1,461/$1 recorded two weeks earlier — a sign, analysts say, of growing resilience in Nigeria’s foreign exchange market.
Financial experts attribute the continued appreciation to enhanced liquidity interventions by the CBN, increased investor confidence, and a steady rise in foreign inflows. The convergence of these factors, they note, signals a turning point for the country’s currency management framework.
Foreign Reserves Hit $43.17 Billion
Complementing the naira’s strong performance, Nigeria’s foreign reserves climbed to $43.17 billion, up from $42.8 billion the previous week. This marks one of the highest levels in recent months and underscores the CBN’s tightening of fiscal controls and its success in sustaining foreign inflows.
According to market observers, the uptick in reserves is being driven by a blend of higher oil revenues, increased diaspora remittances, improved capital inflows, and Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list, which has enhanced global confidence in the nation’s financial system.
“The combination of improved reserves, stronger inflows, and renewed policy discipline is clearly helping the naira regain ground,” said Kitan Babajide, a Lagos-based financial analyst. “However, sustaining these gains will depend on maintaining fiscal prudence, transparent FX management, and accelerating structural reforms.”
Boost from Policy Reforms and Market Confidence
Economist and former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, explained that the naira’s positive trajectory reflects stronger regulatory oversight and improved macroeconomic coordination.
“The exit from the FATF grey list will boost foreign direct investment because it signals a higher level of confidence in Nigeria’s financial system,” Yusuf said. “With improved capital inflows, the forex environment becomes more stable. If perception remains positive, foreign investments will follow.”
Analysts agree that Nigeria’s removal from the grey list not only improves the country’s access to global financial markets but also strengthens correspondent banking relationships and facilitates smoother international transactions.
Outlook: Cautious Optimism Ahead
With the naira firming and reserves strengthening, experts remain cautiously optimistic about the short-term outlook. They emphasize that sustained fiscal discipline, transparent foreign exchange management, and deepening structural reforms will be crucial to preserving recent gains.
Rising oil earnings, growing remittance inflows, and improved investor sentiment have all contributed to the local currency’s resilience. Yet, economists warn that maintaining momentum will require consistent policy coordination and vigilance against external shocks.
For now, the naira’s continued appreciation — alongside a stronger reserve position — offers a welcome signal of renewed market confidence and a potential stabilisation of Nigeria’s broader macroeconomic environment.