Nigeria Economic Update, Issue 21

Data from the Central Bank of Nigeria (CBN) indicated that in May 2025, the Naira averaged ₦1,595 per US dollar in the official foreign exchange market. This reflects a month-on-month stability of the currency against the US dollar, as it averaged about the same amount in April. The relative stability of the Naira against the US dollar is likely caused by the increase in the country’s foreign reserves. In May 2025, the CBN launched the Non-Resident Diaspora Bank Verification Number (NRBVN) platform to enhance financial integration with Nigerians abroad and boost foreign exchange inflows through increased remittances, thus strengthening the Naira. Additionally, the narrowing gap between official and parallel market exchange rates might have significantly contributed to the currency's stability against the USD. However, additional policies are needed to achieve sustained currency stability and strength. Some of these policies include supporting local businesses to produce import substitutes by improving access to credit and technology. Critical investments in the health and education sectors are also essential to reduce the demand for foreign services such as medical tourism, which