Nigeria’s currency capped a remarkable year in 2025, strengthening at the official foreign exchange market to close at N1,419 per dollar. This marks the naira’s most significant annual performance in more than a decade, according to data from the Central Bank of Nigeria. The latest figures reflect a 0.72% appreciation from the previous close of N1,429.30, fueled by better liquidity and limited demand pressures in the market. During trading, the naira reached a high of N1,426 per dollar at the official window.
At the parallel, or “black,” market, the naira also firmed, gaining 0.45% to close at N1,464 per dollar. Analysts note that easing pressures in both formal and informal foreign exchange segments have contributed to the start-of-year recovery, reflecting a broader sense of stability across the country’s FX markets. Earlier in the week, the currency showed mixed movements, widening the FX spread before narrowing again as confidence improved.
Investment banking firm CardinalStone Partners Limited highlighted that the naira recorded a full-year gain of 7.5% in 2025—the first time in 13 years. This recovery comes after two years of sharp adjustments, when the official exchange rate dropped by 48% in 2023 and another 41% in 2024, following major FX reforms. CardinalStone attributed the 2025 performance to improved transparency, fair dealing among authorised dealers, and stronger price discovery, which helped the naira trade within a predictable range.
The strong performance was also supported by record foreign inflows, with investors taking advantage of higher Open Market Operation (OMO) yields alongside the currency’s appreciation. Daily FX turnover across spot and forward markets rose by more than 59% to $421.4 billion compared to 2024, reflecting deepened liquidity and renewed investor confidence. Analysts say these trends could encourage deposit money banks to expand the use of naira debit cards for international transactions, further supporting the currency’s stability.
Experts say the naira’s 2025 gains underscore the impact of ongoing reforms and a more resilient foreign exchange market. With improved transparency, market predictability, and robust capital inflows, the currency is better positioned heading into 2026. The year’s performance signals a promising path for Nigeria’s FX market, strengthening confidence among businesses, investors, and everyday Nigerians alike.
source: dailytime