By Ebi Kesiena
Nigeria’s currency, the Naira, has continued to strengthen at the official foreign exchange market, recording its third consecutive appreciation against the United States dollar this week.
Latest figures from the Central Bank of Nigeria (CBN) revealed that the Naira closed at ₦1,521.46 per dollar on Wednesday, marking a day-to-day gain of ₦4.6 compared to Tuesday’s exchange rate. This steady appreciation underscores a renewed momentum for the local currency amid ongoing fiscal and monetary interventions.
In contrast, trading at the parallel market remained largely unchanged. Data from forex dealers indicated that the Naira exchanged at ₦1,533 per dollar, the same rate sustained since Monday, reflecting a narrowing gap between the official and black market windows.
Analysts have linked the positive performance of the Naira to the rise in Nigeria’s external reserves, which stood at $41.46 billion as of September 2, 2025. The uptick in reserves, they explained, has boosted market confidence and strengthened the CBN’s ability to intervene effectively in the forex market when necessary.
Economists also suggest that recent measures by the monetary authority, ranging from tighter control of speculative activities to increased dollar inflows from oil earnings and diaspora remittances have contributed to stabilizing the currency.
Market watchers say the sustained gains could signal a new phase of exchange rate stability if supported by continued reforms in the forex market and improvements in Nigeria’s non-oil export earnings.
However, they caution that external risks, such as fluctuations in global oil prices and rising U.S. interest rates, may still pose challenges to long-term stability. For now, the third day of consecutive appreciation marks a positive outlook for the Naira, rekindling hope for businesses and consumers grappling with high import costs and inflation pressures.
