The Nigerian naira recorded a notable recovery in the parallel market on Monday, appreciating to N1,527 per dollar, its strongest level since July 25, 2025, when it traded at N1,520, according to Nairametrics data. This marks an improvement from Friday’s rate of N1,530.96, reflecting a steady upward trend that began earlier in September. The gain follows a week where the naira fluctuated between N1,539 on September 1 and N1,530.96 by September 5, showcasing growing resilience.
In the official market, the Central Bank of Nigeria (CBN) reported a similar upward movement earlier in the week, with the naira reaching N1,511.5 on Thursday, September 4, its best performance recently, narrowing the gap with parallel rates. No official data was available for Friday due to a public holiday. The CBN’s efforts, including clearing a $7 billion FX backlog and unifying exchange rates, have bolstered investor confidence, alongside a 0.09% rise in foreign reserves to $41.5 billion by September 3, 2025.
CBN Governor Olayemi Cardoso attributed the stability to increased crude oil production, rising non-oil exports, and reduced imports, trends affirmed during the July Monetary Policy Committee meeting. This aligns with economic gains, including a 67.12% surge in capital importation to $5.64 billion in Q1 2025. However, analysts caution that political activities ahead of the 2027 elections could strain the currency, with Standard Bank projecting a 3.1% depreciation to N1,585.5 by year-end, an improvement from its earlier N1,697.5 forecast.
Dr. Paul Alaje of SPM Professionals warned that mismanagement of FX during campaigns could undermine this progress, while the CBN’s robust reserve position offers a buffer against dollar demand spikes. Despite naira volatility (previously N1,560/$1) and 21.88% inflation in July, the currency’s recent strength signals hope for economic stability, though challenges loom as election spending nears.
