Naira Appreciates by Over N100 Against US Dollar in Forex Market
- The Nigerian currency appreciated by over N100 against the US dollar in both the official and parallel forex markets in 2025
- The rally was supported by a rise in Nigeria's external reserves, which enabled the CBN to intervene effectively in the market
- The CBN has also shared its expectations for 2026, with high hopes for a stronger naira
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.
Naira ended 2025 stronger, gaining more than N100 against the US dollar across foreign exchange markets.
The improvement was supported by rising external reserves, continued policy reforms, and improved liquidity conditions in the market.
Source: Getty Images
According to data from the Central Bank of Nigeria (CBN), the naira appreciated by 6.96%, or N100.07, compared with the same period in 2024, closing at N1,435.75 per dollar on Wednesday, the final trading day of 2025.
At the start of the year, the currency was trading at N1,541.36 per dollar, marking a full-year gain of N105.61, or 7.4%.
On a day-to-day basis, the naira strengthened by 0.7%, rising by N9.93 from N1,445.68 quoted on Tuesday at the Nigerian Foreign Exchange Market (NFEM).
Naira in black market
The naira also appreciated in the parallel, or black market.
The local currency rose by N165, or 11.1%, year-on-year to close 2025 at N1,485 per dollar, compared with N1,650 at the end of December 2024.
Over the course of the year, it strengthened by N175, or 11.8%, from N1,660 at the beginning of the year.
Nigeria’s external reserves, which give the CBN the ability to stabilise the naira and manage market volatility, increased to $45.48 billion as of December 30, 2025, up from $40.88 billion in the previous year.
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), described exchange-rate stability as one of the most notable achievements of 2025.
He explained that the naira generally traded between N1,440 and N1,500 per dollar, with occasional gains helping to boost business confidence.
Yusuf added that improved stability helped reduce imported inflation pressures and made pricing, contracting, and investment planning more predictable, BusinessDay reports.
Source: Getty Images
Here is a monthy breakdown of naira performance in 2025
- January: N1538.5
- February: N1500
- March: N1537
- April: N1429
- May: N1605
- June: N1532
- July: N1527
- August: N1535.5
- September: N1478
- October: N1427.5
- November: N1446.9
- December: N1429
CBN shares projections for 2026, expects stable naira
Earlier, Legit.ng reported that the CBN has projected a more stable and resilient economy in 2026.
The apex bank cited the impact of reforms implemented since 2023 and improved macroeconomic coordination for its stance.
The projection is contained in the 2026 Macroeconomic Outlook, themed “Consolidating Macroeconomic Stability amid Global Uncertainty”, which reviews economic developments in 2025, outlines projections for 2026, and highlights policy priorities to mitigate emerging risks.
Source: Legit.ng
