Naira Hits Highest Level in Months at N1,497 Per Dollar, Black Market Rates Appreciate
- The naira is at its strongest in months as it is rallying against the dollar in the official and black markets
- Experts have said the local currency is on course to finish the year strongly amid a robust forex reserve
- Nigeria’s foreign reserves also hit the highest levels in months at $41.57 billion, putting the naira on a strong pedestal
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The naira has surged to its strongest level in months, trading at N1,497 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The rally, supported by rising foreign reserves and increased dollar supply, has also been reflected in the black market, where rates continue to appreciate.
Source: Getty Images
CBN data shows naira firming up
Analysts say this momentum could shift year-end forecasts for the local currency, which many expected to hover between N1,580 and N1,600 per dollar in 2025.
According to the Central Bank of Nigeria (CBN) FX update for Monday, September 8, 2025, the naira closed at ₦1,506.08/$ after testing an intra-day low of ₦1,497.00 and a high of ₦1,509.50.
The performance came as Nigeria’s external reserves rose to $41.571 billion, an increase of $33.27 million from the previous day.
The CBN attributed the stability to stronger FX inflows, bolstered by oil receipts and private-sector participation. Forex traders also noted that thinning demand pressures have allowed the naira to hold firm across multiple trading sessions.
Analysts rethink forecasts
Earlier in the year, many analysts had predicted that the naira would close 2025 between N1,580 and N1,600 per dollar due to external risks and market pressures.
However, the currency’s recent resilience, combined with CBN interventions, has prompted a rethink.
“Rising reserves and improved FX inflows are restoring confidence,” said a Lagos-based financial analyst, Osas Igho.
She added that the naira may trade below previous projections if the current momentum continues into Q4.
On Tuesday, September 9, 2025, the naira also rebounded in the parallel market at N1,525 per dollar.
Global commodities influence
Trends in global commodity markets are also supporting Nigeria’s currency strength.
On Tuesday, Brent crude oil rose 37 cents (0.6%) to $66.39 per barrel after reports of fresh strikes by Israel in Doha escalated regional tensions.
Similarly, U.S. West Texas Intermediate (WTI) climbed to $62.63 per barrel, according to AIICO Capital Limited’s market note.
Higher oil prices improve Nigeria’s FX earnings, supporting the central bank’s ability to intervene in the market.
Meanwhile, gold prices extended their record-setting run, with spot gold climbing 0.2% to $3,643.57 per ounce after touching an all-time high of $3,673.95. U.S. gold futures closed even higher at $3,682.20.
Fed decision in focus
Markets are also looking ahead to the U.S. Federal Reserve meeting scheduled for next week.
Expectations of a September rate cut are high, with traders betting that lower U.S. interest rates will weaken the dollar globally while boosting demand for oil and other commodities.
A Fed cut would reduce borrowing costs and potentially stimulate economic growth, further supporting oil demand and indirectly strengthening Nigeria’s FX position.
The future of the naira
With external reserves climbing and global conditions turning favourable, forex traders expect the naira to maintain stability in the short term.
Still, experts warn that Nigeria remains vulnerable to sudden shocks in oil prices and shifts in global risk sentiment.
Source: Getty Images
For now, the naira’s rally at N1,497 per dollar offers a boost of confidence for investors, businesses, and households navigating the post-reform economy.
CBN's moves push dollar to lowest in months
Legit.ng earlier reported that the Nigerian currency is on a massive resurgence in the foreign exchange markets.
Data from the Nigerian Foreign Exchange Market (NFEM) shows the local currency is on a strong rally against the US dollar, which is currently at a seven-month low.
On Wednesday, September 3, 2025, the naira appreciated further, trading at N1,522 per dollar, up from N1,525 the previous day.
Source: Legit.ng
