Data released by the CBN showed that the naira appreciated by 14.93 percent, trading at N1,445.39 per dollar on Tuesday, December 2, 2025, compared with N1,661.12 on the same date in 2024—the first trading day under the EFEMS framework. Analysts say the gradual strengthening of the local currency reflects the positive impact of the new trading architecture on transparency and market discipline.
The transformation began in late 2024, when the CBN issued a directive instructing all banks participating in the interbank foreign exchange market to adopt the Bloomberg BMatch system. Operational from December 2, 2024, the platform mandates electronic submission and matching of all orders, providing real-time regulatory visibility. This move was designed to curb market opacity, enhance operational efficiency, and restore confidence in the naira.
On a daily basis, the naira continued to edge higher, appreciating by 0.2 percent to N1,445.39 per dollar, up from N1,448.43 on Monday at the Nigerian Foreign Exchange Market (NFEM), according to CBN data.
The local currency also showed significant improvement in the parallel (black) market, gaining N47 or 3.2 percent, closing at N1,468 per dollar compared with N1,515 a year ago. Observers note that the shrinking gap between the official and parallel market rates—from over 60 percent previously to under 2 percent today—serves as a strong signal of renewed market confidence.
Nigeria’s external reserves have similarly seen steady growth, rising by $4.37 billion or 10.9 percent to $44.66 billion as of November 28, 2025, up from $40.29 billion on December 2, 2024. The increase has been driven by stronger foreign exchange inflows, remittances, and renewed investor interest, bolstered by the CBN’s market reforms.
CBN Governor Olayemi Cardoso highlighted the broader significance of these reforms, noting that the introduction of the Nigerian Foreign Exchange Code established clear rules on transparency, ethics, and fair dealing among authorized dealers. He described EFEMS as “transformative,” providing mandatory order submission, real-time regulatory oversight, and improved price discovery. According to Cardoso, the reforms have eliminated the once-crippling multi-billion-dollar FX backlog, allowing businesses to plan with confidence while reducing market manipulation and restoring discipline.
Monetary Policy Committee member Aloysius Uche Ordu said the naira’s month-on-month gains across both official and parallel market windows reflect positive investor sentiment and the continuing effects of market reforms. He cited resilience in remittance inflows, strong capital market performance, and gradual improvement in Nigeria’s international investment position as factors supporting external stability. Similarly, CBN Deputy Governor Emem Usoro noted that convergence between the NFEM and Bureau De Change segments has enhanced transparency and further strengthened investor confidence.
EFEMS, the electronic platform at the heart of the reforms, automatically matches buy and sell orders to promote fairness and efficiency, while the CBN’s structured trading approach—including a minimum tradable amount of $100,000 with incremental clip sizes of $50,000—has deepened liquidity and improved market functioning, according to Omolara Duke, director of the bank’s Financial Markets Department.
International observers have also welcomed the reforms. Razia Khan, managing director and chief economist for Africa and the Middle East at Standard Chartered Bank, said EFEMS provides “greater transparency and better functioning of the FX market,” enabling policymakers to gauge true FX demand and support sustained naira stability.
One year on, the EFEMS initiative is widely regarded as a turning point for Nigeria’s foreign exchange market, helping to restore credibility, improve transparency, and strengthen both the naira and investor confidence in the economy.