The Nigerian Naira is strengthening against the US dollar, nearing a five-month high as of September 8, 2025. The exchange rate closed at about ₦1,514.86 to the dollar on the official Nigerian Foreign Exchange Market, marking its strongest level since March 6, 2025, when it last closed near the ₦1,512 mark.
The Naira started September trading at about ₦1,526.09 before recovering and settling to this stronger position. The parallel (black) market also saw slight appreciation, with the rate rising to around ₦1,538 per dollar, indicating overall currency strength across different foreign exchange channels.
This rally is attributed to multiple factors, like the Central Bank of Nigeria’s intervention in the forex market, which injected about $15 million to increase liquidity.
A continued portfolio inflows and foreign investments is bolstering supply and demand balance in the forex market.
An increase in Nigeria’s foreign exchange reserves. It rose for the ninth consecutive week to about $41.5 billion, acting as a buffer against currency volatility.
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Global currency trends, including a weakening dollar, and stable to rising crude oil prices influenced by external factors such as OPEC+ decisions. This directly affects Nigeria’s oil revenues and foreign earnings.
Forex analysts and experts maintain that the naira is expected to remain relatively stable in the near term. It is expected to benefit from sustained dollar inflows and external reserves, although caution remains due to speculative demand and volatility in global oil price. These alone could limit further gains.
Overall, this marks a strong start to September for the naira, with optimistic outlooks if current trends in forex inflows and economic stability continue.
