Naira Surges Again as Foreign Reserves Near $43 Billion, Banks, FX Dealers Slash Dollar Rates
- The Nigerian currency has risen against the US dollar in the foreign exchange market
- Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira appreciated for three consecutive days
- Amid the naira’s rise, Nigeria’s foreign reserves also hit another high, nearing $43 billion
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Nigerian naira continued its upward climb on Thursday, October 23, 2025, hitting another high against the US dollar as foreign exchange liquidity improved across banks and dealer platforms.
Data from the Central Bank of Nigeria (CBN) revealed that the local currency appreciated to ₦1,460 per dollar, strengthening from the previous day’s rate of ₦1,463.43.
Source: Getty Images
Nigeria’s external reserves rise toward $43 billion
Intraday trading showed the naira touching a high of ₦1,464, while some transactions closed as low as ₦1,458, a sign of reduced dollar pressure in the market.
FX dealers attributed the sustained gains to increased inflows, improved liquidity, and calmer demand for foreign currency by importers and investors.
Many banks reportedly sold dollars at more competitive rates to attract customers and clear backlogs, boosting confidence in the official window.
In another positive indicator, Nigeria’s foreign reserves continued to grow, nearing the $43 billion mark.
According to CBN figures, reserves increased to $42.865 billion on Wednesday, up from $42.792 billion a day earlier, reflecting steady inflows from oil sales and improved foreign exchange management.
Analysts note that this rise in reserves could strengthen the CBN’s ability to defend the naira and stabilize the FX market in the coming weeks.
“The naira is now on a solid footing, driven by the rising reserves,” Janet Ogochukwu, economist and senior banker, told Legit.ng.
“The next thing the CBN should do is to leverage the robust reserves for the naira’s long-term gain,” she said.
The improvement also coincides with Nigeria’s renewed efforts to secure a higher crude production quota from the Organization of Petroleum Exporting Countries (OPEC).
Currently capped at about 1.5 million barrels per day (mbpd), Nigeria’s quota no longer reflects its true production potential, officials say.
However, due to recent labour unrest and operational challenges, crude output fell to 1.39 mbpd in September, down from 1.43 mbpd in August, marking the second straight month of decline.
Oil prices rally after US sanctions on Russian giants
The recent uptick in Nigeria’s reserves has also been supported by a surge in global oil prices following new sanctions by the United States on Russia’s top oil firms, Rosneft PJSC and Lukoil PJSC.
The sanctions, aimed at cutting off Moscow’s oil revenues amid its war in Ukraine, sent Brent crude futures soaring by 4.7% to $65.50 per barrel, while West Texas Intermediate (WTI) jumped 6.2% to trade above $61, marking its biggest one-day gain since the Israel-Iran conflict flared in June.
Source: Getty Images
Traders said the restrictions could severely disrupt Russia’s oil exports to key buyers like India, tightening global supply and driving prices upward.
Higher oil prices typically boost Nigeria’s external earnings, improving its dollar inflows and strengthening its foreign reserves position.
Outlook: Stronger fundamentals, renewed confidence
With foreign reserves rising and the naira firming against the dollar, analysts say Nigeria’s short-term economic outlook appears brighter.
Sustained gains in oil prices and improved FX inflows could ease inflationary pressures, support imports, and stabilize investor confidence in the months ahead.
However, experts caution that lasting stability will depend on Nigeria’s ability to maintain production levels, diversify exports, and sustain policy consistency in its foreign exchange market.
Naira surges against dollar in official, black markets
Legit.ng earlier reported that after a slight pause on Tuesday, July 8, 2025, the Nigerian currency picked up and surged against the US dollar in the official window on Wednesday, July 9, 2025.
The local currency strengthened further in the currency market to close at N1,520 per dollar, supported by increased US dollar liquidity, with trades ranging from N1,520 and N1,530 per dollar.
According to market data, market confidence surged in the currency market as findings showed that Nigeria’s external reserves regained their momentum.
Source: Legit.ng
