Naira Strengthens as CBN Confirms New Exchange Rate, External Reserves Hit $42bn
- The Nigerian currency has continued to appreciate in the FX market, trading below N1,500 per dollar
- The new NFEM rate comes amid a mix of volatility and the appreciation of the country’s external reserves
- Experts have predicted long-term gain for the naira, saying the currency could appreciate beyond 2025
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The naira’s value improved again in the Nigerian foreign exchange market as rising external reserves continue to spur investors’ confidence.
Several analysts have expressed optimism that the Central Bank of Nigeria (CBN) will maintain its stance to defend the local currency till the end of the year.
Source: Getty Images
The naira bounces in the official window
The consistent rise in external reserves has also enhanced market confidence in the absence of capital restrictions.
The foreign exchange market has continued to experience volatility, which aligns with daily forex demand against the dollar volume available at the supply side.
Meanwhile, updated data from the Central Bank of Nigeria (CBN) showed that the naira rose against the dollar, gaining 0.08% to N1,487.37 per dollar, on Tuesday, September 23, 2025, reflecting stronger demand for the local currency.
CBN data shows updated exchange rate
Currency dealers quoted the dollar at an intraday high of N1,495 per dollar at the official window, and some transactions were closed at the lowest rate of N1,482.33.
Additionally, the naira appreciated by 0.08% at the parallel market, closing at N1,516 per dollar.
The CBN’s data showed that Nigeria’s gross external reserves rose to $42.0362 billion on Monday, September 22, 2025, from $42.032 billion from several sources.
Analysts predict long-term gain for the naira
However, the new trend shows that the naira will continue to trade within the range noticed in the third quarter, while analysts’ predictions show the possibility of exchange rate gains in the fourth quarter.
Source: Getty Images
With the rise in oil production, Nigeria’s forex receipts from oil sales have continued to rise.
Energy experts have disclosed that the nation's oil production rebound will spur economic growth, especially as foreign investors are showing renewed interest in Nigeria's hydrocarbon assets.
Naira trades mixed as banks sell dollars higher
Legit.ng earlier reported that the Nigerian currency traded low in the Nigerian foreign exchange markets on Monday, September 22, 2025, as demand for the dollar surged in the official window. Despite the rise in FX inflows, the naira depreciated in the Nigerian Foreign Exchange Market.
According to data from the Central Bank of Nigeria (CBN), the official exchange rate closed at N1,488.60.17 per dollar at the official market. Currency dealers quoted the dollar at a high of N1,492 per dollar and a low of N1,486.
The development shows that there was a slight rise in dollar demand, as the apex bank funded the supply side with $150 million last week. Despite sufficient liquidity, the naira’s value fell against the dollar by 0.05% to N1,488 per dollar.
Source: Legit.ng
