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Data from the Nigerian Foreign Exchange Market (NFEM), published by the Central Bank of Nigeria (CBN), showed that the naira appreciated by 7.4% in 2025. The currency closed at ₦1,435.75 per US dollar on Wednesday, December 31, 2025, the final trading day of the year, compared with ₦1,541.36 per US dollar on January 2, marking the start of the year. Quarterly average exchange rate data further confirm this trend: the naira averaged ₦1,521.57 in the first quarter, ₦1,581.06 in the second quarter, ₦1,521.11 in the third quarter, and ₦1,451.66 in the fourth quarter. The currency recorded its strongest performance in the final quarter, when the average exchange rate remained below the ₦1,500 threshold. In Parallel, Nigeria’s external reserves improved markedly, increasing by 11.3%, from $40.88 billion at the beginning of 2025 to $45.50 billion by December 31. This represents the highest reserve level since September 5, 2018, when reserves stood at $45.51 billion, highlighting a significant strengthening of the country’s external position. To sustain Naira stability and support further appreciation, policy efforts should focus on expanding foreign exchange inflows while reducing import dependence. On the oil front, the economy requires targeted investments in production and transport infrastructure, along with stricter enforcement against oil theft and pipeline vandalism, to increase foreign exchange inflow from oil sales. At the same time, non oil foreign exchange earnings can be enhanced through export promotion for local businesses by means such as tax incentives, improvements in critical infrastructure, particularly ports, electricity, and transportation, and the digitisation of trade processes to improve efficiency and reduce transaction costs.
Download PDFData from the Nigerian Foreign Exchange Market (NFEM), published by the Central Bank of Nigeria (CBN), showed that the naira appreciated by 7.4% in 2025.
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