The Nigerian naira strengthened to its highest level in five months on September 16, 2025, closing at N1,497.5 per U.S. dollar on the official market.
This represents a modest 0.21% gain from the previous rate of N1,501.49/$ recorded on September 12. The last time the currency traded this strong was March 4, when it hit N1,491.67/$.
Gains on the Official Market
Data from the Nigeria Foreign Exchange Market (NFEM) show the naira has been edging up steadily since the start of September.
From September 1–4, the exchange rate moved from N1,526.09/$ to N1,514.86/$, marking consistent improvement. Between September 8 and 10, it strengthened further to N1,500.91/$ before a slight dip to N1,502.13/$ on September 11.
Parallel Market Also Sees Strength
The currency is also showing resilience in the parallel market. On September 16, it appreciated to N1,535/$, up from N1,540/$ the previous day.
Throughout the month, rates have remained relatively steady, starting at N1,545/$ on September 1, touching N1,400/$ on September 2 and 3, then moving back to N1,545/$. By September 8, it improved to N1,525/$ and held near that level until mid-September.
Analysts Cite Rising Reserves
Market watchers attribute the naira’s recent performance to steady foreign inflows and a build-up in Nigeria’s external reserves.
As of September 13, gross reserves climbed to $41.69 billion, boosting investor confidence and providing the Central Bank of Nigeria (CBN) more room to stabilize the market.
However, analysts warn that lasting stability requires structural changes, including diversifying forex sources and attracting long-term investments.
Relying on short-term portfolio inflows may not be enough, especially with increased demand likely before the year-end holidays.
Outlook
Breaking below N1,500/$ signals improved market sentiment, but sustaining this level will depend on how well Nigeria manages external pressures and speculative demand in the weeks ahead.
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