Nigeria’s Naira Hits Strongest Level in Weeks at N1,421.73/$1 Amid Rising Dollar Inflows
- The Nigerian naira strengthened to N1,421.73 per dollar, marking a 1.07% gain and extending a two-week rally
- Analysts attributed the steady appreciation to increased dollar inflows, CBN liquidity measures, and rising investor confidence
- In addition, support came from Nigeria’s removal from the FATF grey list, higher oil revenues, and growing foreign reserves
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Nigerian naira extended its winning streak on Friday, October 31, 2025, closing the week stronger at N1,421.73 per dollar at the official foreign exchange market.
This marks another day of sustained gains, reinforcing growing optimism among investors and traders about the local currency’s near-term outlook.
Source: UGC
According to data from the Central Bank of Nigeria (CBN), the naira appreciated by N15.23 or 1.07% compared to Tuesday’s closing rate of N1,448.20/$1.
The steady appreciation, which has now lasted more than two weeks, signals renewed stability in Nigeria’s foreign exchange landscape after months of volatility.
During the week, the currency traded at N1,452.79/$1 on Monday, N1,448.20/$1 on Tuesday, N1,444.42/$1 on Wednesday, N1,431/$1 on Thursday, and N1,421.73/$1 on Friday, underscoring a consistent upward trajectory.
The last notable depreciation occurred on October 15, 2025, making the recent trend one of the longest periods of appreciation this year.
On a week-on-week basis, the naira gained 1.9%, closing at an average of N1,427.50/$1, compared to N1,455/$1 in the previous week.
Trading in Nigeria’s parallel (black) foreign exchange market saw the US dollar selling for around N1,490 and buying at approximately N1,479 per dollar, reflecting continued activity outside the official exchange channels.
Analysts note that this recovery also represents a rebound from the N1,461/$1 recorded two weeks earlier, highlighting sustained momentum in both official and parallel markets.
Why naira is performing well
Market watchers have linked the naira’s improvement to a combination of economic and policy factors, including increased foreign exchange inflows, proactive CBN liquidity interventions, and growing investor confidence following ongoing monetary reforms introduced by the Bola Tinubu administration.
Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list, coupled with rising crude oil revenues, higher foreign reserves, and robust diaspora remittances, has also contributed to the naira’s renewed strength.
Speaking on the development, Demilare Ogunmola, an economist, said the CBN’s recent policy alignment is beginning to yield tangible results:
“The naira’s appreciation is not just a product of short-term market forces, but an early sign that Nigeria’s broader macroeconomic reforms are taking root.
The coordinated efforts between fiscal and monetary authorities, especially around exchange rate unification and improved FX liquidity, are gradually restoring confidence among both local and foreign investors.”
Financial experts also believe that if the current momentum is sustained, the naira could maintain its upward trajectory into November, provided that oil revenues remain stable and speculative pressures are kept in check.
Source: UGC
Nigeria records 200% surge in diaspora remittances
In related news, Legit.ng reported that Nigeria witnessed a remarkable jump in remittances from its citizens abroad, with inflows rising by 200% in recent months.
According to CBN governor Olayemi Cardoso, monthly diaspora remittances grew from about $200 million to $600 million within the last two months.
Cardoso noted that projections indicate these inflows could climb further, potentially hitting $1 billion per month before the year ends.
Source: Legit.ng
