Naira Gains Momentum: CBN Policies, Fintech Growth, and Oil Output Drive September Surge
September 2025 marked a remarkable rebound for the Nigerian Naira, with the currency showing its strongest performance in recent months. Bureau De Change (BDC) operators and industry experts have attributed this “Naira boom” to a combination of tighter Central Bank of Nigeria (CBN) policies, renewed investor confidence, and the growing influence of fintech platforms in curbing speculative foreign exchange demand. Analysts note that the Naira consistently traded below N1,500 per dollar for over two weeks, a milestone not seen since earlier this year.
Alhaji Aminu Gwadabe, president of the Association of Bureau De Change Operators of Nigeria (ABCON), explained that multiple factors drove the rally. “The Naira improved from its low of N1,500/$1 to around N1,400/$1, supported by higher crude oil production, robust upstream and downstream investments, and tighter management of dollar demand,” he said. Gwadabe highlighted that speculative buying has significantly declined, thanks in part to fintech platforms making domestic transactions easier without the need for domiciliary accounts.
The CBN’s integration of fintech systems and the Non-Resident Bank Verification Number (NRBVN) framework also played a key role in promoting transparency and compliance. “These systems unify identity verification across banks and capture non-residents, boosting compliance and tax obligations,” Gwadabe noted. Coupled with Nigeria’s efforts to exit the Financial Action Task Force (FATF) grey list, these reforms have improved investor perception and attracted foreign financial interest.
Other industry voices reinforced these insights. BDC operator Abubakar Ardo cited increased dollar injections by the CBN and rising diaspora remittances during the back-to-school period as critical to boosting liquidity. Meanwhile, Dr. Eugene Eke, economist at the University of Abuja, emphasized the synergy between fiscal and monetary policy in stabilizing the Naira. “Closer coordination between the Ministry of Finance and the CBN, along with improved TSA compliance, has reduced uncertainty and speculative pressures on the currency,” he said.
Looking ahead, experts suggest that continued fintech-enabled monitoring, disciplined CBN policies, and rising oil output could sustain the Naira’s recovery through the final quarter of 2025. Gwadabe added, “October will be the real test. If these policies continue, the Naira’s recovery could mark the start of a sustainable upward trend rather than a one-month spike.” With foreign reserves surpassing $42 billion and trading stability maintained throughout September, Nigeria’s currency appears poised for a more confident trajectory.
Source: Nairametrics