Economy

Naira Strengthens to N1,500/$ as Reserves Hit $41.6bn

Published

1 year ago

September 11, 2025

Naira strengthens to N1,500/\$ at official market as reserves rise to \$41.6bn, sustaining momentum for the second consecutive day

Naira Strengthens to N1,500/\$ at the Nigerian Foreign Exchange Market on Wednesday, marking the second straight day the local currency traded below the key threshold.

Also read: Dollar to Naira Black Market Rate Falls Today Sept 6

Data from the Central Bank of Nigeria showed that the naira fluctuated between N1,498/\$ and N1,507/\$ during the trading session, closing at N1,500.91/\$ at the official market.

This represents a continuation of the rally that began in early September, when the naira opened at N1,526.09/\$ and gradually strengthened.

The parallel market reflected a similar trend, with the naira appreciating to between N1,515/\$ and N1,517/\$ on Wednesday, up from N1,525/\$ the previous day.

Analysts linked the rally to stronger demand for the naira, reduced speculative trading, and rising foreign reserves. Nigeria’s external reserves climbed to \$41.59bn as of Tuesday, up \$25m from the previous day.

At over \$41bn, reserves now provide around 10 months of import cover, far above the three-month global benchmark.

Meristem Research, in its Macros and Market Insight report, noted that improved reserves, moderating inflation, increased crude oil production, and higher capital inflows had strengthened market stability.

“These factors boosted the country’s foreign exchange reserves, helping to sustain stability in the naira,” the report stated, adding that the stronger reserve position signals confidence to foreign investors and supports exchange rate management.

Analysts remain optimistic about the near-term outlook, citing sustained oil receipts and steady non-oil export growth.

However, they warn of potential risks from fluctuating global oil prices, security issues in oil-producing areas, and possible supply disruptions.

For businesses and households, a firmer naira offers relief on import costs and hopes of easing inflationary pressures.

Also read: Naira Strengthens Against Dollar to Six-Week High, Boosting Confidence

Economists say the Central Bank’s policies to unify exchange rates, attract foreign capital, and curb speculation are beginning to show results, but maintaining the momentum will require continued macroeconomic discipline.

Related Topics:Central Bank of Nigeria Currency Stability featured Foreign Reserves Naira exchange rate Nigerian Economy

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

8 hours ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.