Naira Gains Value as Exchange Rate Improves to ₦1,455 per Dollar

On 5 October 2025, economic analysts predicted that Nigeria’s naira would continue to appreciate against the U.S. dollar after weeks of steady gains. Data from the Central Bank of Nigeria (CBN) showed the naira strengthening by about 1.4 percent in the official market on Thursday, with the currency trading at around ₦1,455.23 per dollar compared with ₦1,475.34 earlier in the week; the parallel market also recovered, closing near ₦1,450 instead of the ₦1,495 seen on Tuesday. The recovery follows months of currency instability—the naira hit a record low of nearly ₦1,900 per dollar in February 2024—and aligns with President Bola Tinubu’s policy to unify exchange rates introduced in June 2023.

Financial experts credit the rebound to measures taken by the CBN to boost liquidity and clamp down on speculation, along with reduced demand for foreign currency. However, market watcher Sani Salisu Dada and economist Dr Abdulrazak Fagge caution that the surge might be short‑lived; they note that many holders of dollars rushed to the market to take advantage of higher rates, which helped pull the naira higher, but this effect may fade soon.

A stronger naira could bring relief to ordinary Nigerians by making imported goods and raw materials cheaper. Dr Shamsuddin Muhammad of Bayero University Kano told the BBC that if the dollar weakens, prices of imported commodities such as rice and manufacturing inputs should fall, helping consumers and businesses alike. But he warns that local producers who rely solely on domestic inputs could struggle to compete if foreign products become cheaper and higher On 5 October 2025, economic analysts predicted that Nigeria’s naira would continue to appreciate against the U.S. dollar after weeks of steady gains. Data from the Central Bank of Nigeria (CBN) showed the naira strengthening by about 1.4 percent in the official market on Thursday, with the currency trading at around ₦1,455.23 per dollar compared with ₦1,475.34 earlier in the week; the parallel market also recovered, closing near ₦1,450 instead of the ₦1,495 seen on Tuesday. The recovery follows months of currency instability—the naira hit a record low of nearly ₦1,900 per dollar in February 2024—and aligns with President Bola Tinubu’s policy to unify exchange rates introduced in June 2023.

Financial experts credit the rebound to measures taken by the CBN to boost liquidity and clamp down on speculation, along with reduced demand for foreign currency. However, market watcher Sani Salisu Dada and economist Dr Abdulrazak Fagge caution that the surge might be short‑lived; they note that many holders of dollars rushed to the market to take advantage of higher rates, which helped pull the naira higher, but this effect may fade soon. quality than local goods.