The Nigerian naira has risen to a six-month high at the official foreign exchange (FX) market.
According to data published on the Central Bank of Nigeria (CBN) website, the naira appreciated to ₦1,514.86 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Thursday, 04 September 2025, the last trading day last week before the public holiday for the Eid-el Maulud celebration.
The last time the naira traded within this range was on March 6, 2025, when it recorded ₦1,512.30 per dollar at the official market.
On a day-on-day basis, the local currency gained ₦6.59 when compared to the ₦1,521.45 it traded for on Wednesday, September 3.
It began last week on a positive note, trading at ₦1,526.09 per dollar on Monday, September 1, against the previous week’s ending of ₦1,531.57. On a week-on-week basis, the naira gained ₦16.71 at the official market.
READ ALSO: CBN’s Recent Reforms Drive Economic Growth, Strengthen Naira
At the parallel market, also known as the black market, the naira maintained a steady rate of ₦1,535 against the greenback.
The appreciation of the naira recorded at the official market last week comes amid a steady rise of Nigeria’s external reserves in recent times. As of September 3, 2025, the reserves stood at $41.49 billion, the highest in four years, according to CBN data.
Experts have affirmed that strong FX reserves help to stabilise the naira, provide a buffer against external shocks, enhance Nigeria’s ability to meet foreign obligations, and bolster investor confidence.
READ ALSO: Forex Traders Credit Naira Strength to Excess Dollar Supply
Analysts at Cowry Assets Management projected that the external reserves could reach $45 billion by December 2025 if global risk conditions remain supportive and offshore flows are not disrupted.
They noted that the strengthening of the external reserves will enable the CBN to sustain its interventionist approach aimed at boosting liquidity in the FX market.
The reserves surge has been attributed to CBN’s strategic reforms.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
