Naira strengthens to ₦1,455.17 per dollar as Nigeria’s external reserves climb to $42.58bn, boosting investor confidence

Naira recorded a powerful rebound against the United States dollar on Friday, closing the week on a positive note amid a steady rise in Nigeria’s external reserves and renewed market confidence.

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Fresh data from the Central Bank of Nigeria (CBN) showed that the local currency appreciated to ₦1,455.17 per dollar at the official foreign exchange market, a marked improvement from Thursday’s rate of ₦1,466.65. The ₦11.48 daily gain represents one of the strongest advances seen in recent weeks.

Analysts attributed the Naira’s upward momentum to the CBN’s tight monetary stance and consistent inflows into the country’s reserves, which have continued to strengthen Nigeria’s external position.

As of October 9, 2025, Nigeria’s foreign reserves rose to $42.58 billion, up from $42.40 billion a week earlier signalling healthy foreign inflows and increased investor assurance.

The positive trend extended to the parallel market, where the Naira appreciated to ₦1,503 per dollar on Friday, compared to ₦1,505 the previous day.

This consistent performance across both markets has fuelled optimism of a stabilising exchange rate regime.

Currency experts say the rally reflects a combination of Central Bank interventions, improved oil receipts, and stronger remittance inflows from Nigerians abroad.

They also believe that the rising reserves have boosted market liquidity and reassured investors of the government’s capacity to meet forex demands.

Friday’s performance marks the Naira’s strongest level in more than a week — last matched on October 3, when it traded at ₦1,455.24 per dollar.

Economists suggest that if the currency maintains its upward trajectory, it could help ease inflationary pressures and stabilise prices in key import-dependent sectors, particularly manufacturing and consumer goods.

They, however, urge the Federal Government to consolidate the gains through fiscal discipline, curb speculative trading, and promote non-oil exports that can further enhance dollar inflows.

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The recent rally in both the exchange rate and external reserves has strengthened hopes of a more stable financial outlook for Nigeria in the months ahead — a potential turning point for Africa’s largest economy.