Resilient Naira Rebounds as Nigeria’s Eurobond Sale Smashes Expectations, Defying US Threats
- Against threats of US military action in Nigeria, the Nigerian currency rebounded in the foreign exchange market
- On Thursday, November 6, 2025, the naira appreciated, closing strongly against the US dollar
- The naira also hit an intraday high of ₦1,441, with a low of ₦1,434 per dollar, reflecting improved liquidity
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira demonstrated renewed resilience on Thursday, November 6, 2025, appreciating against the US dollar in both official and parallel markets amid easing demand pressures and stronger foreign reserves.
Data released by the Central Bank of Nigeria (CBN) showed that the local currency climbed to ₦1,436 per dollar at the official window, strengthening from ₦1,446 per dollar recorded the previous day.
Source: Getty Images
The naira also hit an intraday high of ₦1,441 per dollar, with a low of ₦1,434, reflecting improved liquidity and reduced speculative pressure.
The official spot rate closed at ₦1,436.74 per dollar, compared with ₦1,438.49 on Wednesday.
External reserves hit $43.3bn amid eurobond success
In the parallel market, the naira settled around ₦1,450 per dollar, showing relative stability as market confidence improved.
Nigeria’s foreign reserves have climbed to $43.3 billion, providing about 12 months of import cover.
Analysts attribute this rebound to improved oil receipts, stronger investor inflows, and the government’s successful Eurobond issuance of $2.35 billion, which was oversubscribed by global investors.
The oversubscription signals renewed confidence in Nigeria’s economic management and fiscal outlook, particularly as the government intensifies efforts to attract foreign capital amid global uncertainties.
Financial analysts at AIICO Capital Limited said the outlook for the naira remains positive in the near term, supported by robust reserves, CBN’s active intervention in the FX market, and elevated oil prices.
“We expect market stability to depend on global oil prices, continued CBN FX interventions, and investor sentiment, particularly how the Federal Government manages the fallout from President Trump’s comments and threats of aid suspension,” the firm stated.
Oil prices, global tensions shape market sentiment
Oil markets continue to influence Nigeria’s external earnings and currency strength.
The World Bank reported that crude prices rose by 5 percent toward the end of October following fresh US sanctions on Russian oil firms, with Brent crude closing at $65 per barrel.
By Thursday, Brent had slightly declined to $63 per barrel as US oil inventories rose, though OPEC+’s decision to pause production hikes helped curb oversupply fears.
Despite occasional rebounds, oil prices in 2025 have generally declined due to sluggish global demand and trade tensions.
The Urals benchmark dropped below the $60 per barrel price cap before sliding further to $47.6 per barrel in September.
Global energy trends and naira’s outlook
The World Bank projects global oil demand to grow modestly—by only 0.8 million barrels per day (mb/d) in 2025, reaching 103.8 mb/d, with a slight rise to 104.5 mb/d in 2026.
While demand in advanced economies is expected to stay flat, growth in China and India remains pivotal.
In Nigeria, sustained crude output, improved fiscal discipline, and proactive FX management are expected to keep the naira on a stable path.
Source: Getty Images
With the Eurobond inflow and stronger reserves, market analysts predict the naira could maintain or slightly improve its position if external shocks remain contained.
Naira gains big with stronger reserves
Legit.ng earlier reported that Nigeria’s currency, the naira, has sustained its strongest rally in months, trading around ₦1,487 per dollar at the official foreign exchange market.
Analysts credit the rebound to a mix of CBN reforms under Governor Olayemi Cardoso, growing foreign reserves, reduced speculative activity, and renewed investor trust.
Official data showed the naira traded between ₦1,498/$ and ₦1,507/$ last week, compared to ₦1,526/$ at the start of September.
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Source: Legit.ng
