Dollar Crashes by 15.28%, Tinubu Praised As CBN Releases New Exchange Rates
- The value of the naira has strengthened against the US dollar in the last five months, new data shows
- The federal government said reforms, not luck, drove the rise in the strong performance of the naira
- Latest data from the Central Bank of Nigeria showed that the naira closed the month of August stronger
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Tanimu Yakubu, director-general of the Budget Office, disclosed that the naira strengthened by 15.28% against the US dollar over the past five months.
Yakubu said the rise in the naira’s value was driven by reforms, higher oil earnings, and increased diaspora inflows.
Source: Getty Images
According to him, the Nigerian currency had appreciated to N1,525 per dollar by August 2025, recovering from lows of N1,800 in March 2024.
He described the rebound as a “policy-driven correction” that has restored investor confidence and created a transparent market.
He said:
“This wasn’t luck; it was policy. Increased oil receipts, swelling diaspora remittances, and the clearing of over $4 billion in foreign exchange backlogs restored investor trust.
"The unification of Nigeria’s FX windows created a single, transparent market rate—finally letting the currency find its realistic value.”
Why is naira appreciating?
Explaining further, Yakubu praised President Bola Tinubu’s decision to remove Nigeria’s fixed exchange regime in 2024 had initially triggered a sharp sell-off, sending the naira to record lows, BusinessDay reports.
He noted that Nigerians are gradually seeing the dividends of the foreign exchange market reforms.
He added:
“Critics were quick to call it a collapse. But beneath the noise, a deliberate, high-risk recalibration was underway one that is now paying off.”
Yakubu further argued that critics had missed the broader picture:
A floating currency, when backed by sound policy, is not a weakness but a tool for national competitiveness."
The budget office boss added that if Nigeria stays the course, the naira’s recovery could mark the beginning of a sustainable, export-led economic transformation.
Source: Twitter
New exchange rates
Meanwhile, the Central Bank of Nigeria (CBN) published updated exchange rates for the final trading day of August on Friday, August 29, showing the naira recorded its strongest performance in months.
At the Nigerian Foreign Exchange Market (NFEM), the currency gained N4.16 or 0.27% against the U.S. dollar to close at N1,531.45/$1, compared with N1,535.61/$1 on Thursday.
The naira also appreciated against the Pound Sterling by N12.17 to settle at N2,064.25/£1, stronger than the previous day’s N2,076.42/£1.
Against the Euro, it rose by N5.33 to quote at N1,789.18/€1, up from N1,794.51/€1 a day earlier.
Latest exchange rates by CBN
- CFA: N2.73
- Yuan/Renminbi: N214.78
- Danish Krona: N239.70
- Euro: N1,789.18
- Yen: N10.42
- Riyal: N408.17
- South African Rand: N86.58
- Swiss Franc: N1,913.03
- Pounds Sterling: N2,064.25
FX reserves rise
Legit.ng earlier reported that the Central Bank of Nigeria disclosed that the country’s external reserves rose to $41.22 billion.
This marks the first time in over four years that the reserves have crossed the $41 billion mark.
The strong reserves give the CBN’s capacity to defend the naira.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
