The naira strengthened past a key level against the euro, closing at N1,497 per euro according to the latest Central Bank of Nigeria data. This is the first time the currency has traded below N1,500 per euro since April 2024.
For most of 2023 the exchange rate had remained under N1,000 per euro. After the 2024 foreign-exchange reforms and the subsequent devaluation, the rate moved above N1,500 and at one point approached N1,800. Since late last year the euro-naira pair has declined from levels near N1,684 to the current N1,497.
Stable Dollar Rate and Narrowing Spreads
In the official Nigerian Foreign Exchange Market the naira has traded in a relatively tight range of N1,327 to N1,330 per US dollar, supported by repeated Central Bank liquidity injections and steady external reserves. The gap between official and parallel-market rates has also narrowed, improving price discovery and reducing arbitrage opportunities. In the parallel market the dollar has mostly traded between N1,370 and N1,390.
The naira’s gain against the euro largely reflects cross-rate dynamics. Because the naira is closely linked to the US dollar in Nigeria’s foreign-exchange market, a weaker euro against the dollar automatically lowers the euro’s value in naira terms even when the naira-dollar rate itself is stable.
Supporting Factors for the Naira
Several domestic developments have reinforced the currency’s position. Central Bank reforms, tighter monetary policy and greater transparency in official windows have dampened speculative demand. Increased domestic refining, particularly at the Dangote Refinery, has reduced the foreign-exchange outflows previously required to import petrol. Strong agricultural exports and elevated crude-oil prices have also supported Nigeria’s trade surplus with the Eurozone.
On cross-currency charts the naira has held key moving averages, pointing to a more stable short- to medium-term trend than in the years of sharp depreciation. Continued inflows and liquidity management are expected to help sustain this pattern.
Euro Under Pressure Globally
The euro has fallen to its weakest level against the US dollar since May 2025 amid growing investor concern about political and fiscal risks in the Eurozone. The common currency dropped 0.8 per cent to $1.1161 during Asian trading, with hedge funds and short-term Asian funds selling euros.
Political uncertainty in France has been a particular focus. Opposition parties have shown limited willingness to negotiate with President Emmanuel Macron’s government ahead of the next election. Recent polls suggest both far-right candidate Marine Le Pen and far-left contender Jean-Luc Mélenchon are positioned to reach a second-round runoff. The premium investors demand for French debt over equivalent German bonds has risen to its highest level since 2011. Reports of preparations for an early election in Spain have added to the sense of regional instability.
The combination of a more stable naira against the dollar and a weaker euro has therefore produced a clearer appreciation of the Nigerian currency against the European unit.
