Naira Breaks Below N1,500/$ as Nigeria’s External Reserves Hit 6-Year High of $42bn
- The Nigerian currency continued to appreciate in the official and black markets last week
- The development followed the rise in Nigeria’s external reserves, which rose to a six-year high
- Experts have predicted continued strengthening of the naira due to the nation’s robust inflows
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Nigerian currency, the naira, received a massive boost following an accretion in Nigeria’s external reserves last week.
The reserves hit their highest in six years, boosted by additional inflows from different sources.
Source: Getty Images
External reserves get $692m inflows
According to reports, in September, total inflows into the reserves hit $692.28 million, Central Bank of Nigeria (CBN) data shows.
Nigeria’s foreign reserves continue to see inflows from oil export revenue.
Robust FX reserves continue to boost investors’ confidence that the forex market will not be challenging as they park the US dollar in financial market instruments.
Additionally, the rising oil output remains positive for the local currency as fiscal performance maintained an uptrend relative to the recent record of the government’s oil revenue.
The naira breaks below N1,500 per dollar
According to a report by Market Forces Africa, the naira is testing the floor again in the FX market.
For the first time in a while, the local currency traded below the N1,500 per dollar ceiling.
TrustBanc Group Limited said that with reserves rising, spreads narrowing, and foreign confidence stabilising, the market conditions are aligning.
Last week’s bullish run dominated the foreign exchange market as the naira extended its gains across FX windows, held by a softer US dollar and improved liquidity flows into the system.
Data from the CBN shows that the naira appreciated by 0.91% per week to close at N1,487.90 per dollar, the first break below the N1,500 ceiling since February 2025.
Black market rate shows strength
In the unofficial black market, the local currency also remained defiant against the US greenback, closing at N1,521 per dollar.
External reserves improved as FX inflows and sustained CBN interventions aimed at increasing confidence in the naira.
The reserves’ build-up reinforces CBN’s capacity to manage supply-demand imbalances while sustaining currency stability.
“We are looking at long-term naira stability,” Janet Ogochukwu, senior banker and economist, told Legit.ng.
“The apex bank is doing something right because the exchange rate is reflecting the robust reserves,” she said.
Global oil prices tumble
On Friday, September 18, 2025, WTI crude futures dropped to approximately $ 63.30 per barrel, marking a third consecutive session of losses and erasing earlier weekly gains.
This decline followed U.S. President Donald Trump's reaffirmation of his preference for lower oil prices, indicating that cheaper energy takes precedence over imposing additional sanctions on Russia.
His remarks alleviated concerns about significant supply disruptions, despite earlier Ukrainian strikes on Russian energy infrastructure that had raised fears of tighter global supply.
Analysts anticipate that the current stability will persist in the near term.
They expect the Naira to trade positively below N1,500 per dollar, supported by favourable liquidity conditions and ongoing global dollar weakness, which continues to underpin market sentiment.
Mixed fortunes as naira reverses two-week gain
Legit.ng earlier reported that the Nigerian currency, the naira, reversed a two-week gain in the official window on Wednesday, September 17, 2025, due to a shortage of forex.
The naira’s value depreciated as the Nigerian Foreign Exchange Market (NFEM) experienced an imbalance.
CBN data shows that the spot rate at the official market closed at N1,494 per dollar, from N1,484 the previous day.
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Source: Legit.ng
