Naira Rises to N1,419 after Historic Performance in 2025
The Nigerian local currency, the naira, appreciated at the official foreign exchange market, with the spot rate settling at N1,419 per dollar in the absence of significant forex market pressure.
The local currency had posted a 7.5% gain against the US dollar in 2025, the first gain in 13 years, according to investment banking firm CardinalStone Partners Limited.
In 2023 and 2024, the official exchange rate plunged by 48% and 41% consecutively due to FX reforms. Naira had faced perennial annual depreciation but managed to stand strong last year.
A daily FX update released by the Central Bank of Nigeria (CBN) indicated the official rate touched an intraday high of N1,426 per dollar and closed much stronger due to sufficient liquidity in the forex market.
The spot rate climbed by 0.72% to ₦1,419.07 per dollar at the CBN official window, from N1,429.30 the previous day. In the parallel market, the local currency posted a 0.45% gain against the dollar to close at ₦1,464/$.
The forex swings indicated enhanced currency confidence and eased pressures across both the regulated official segment and the informal foreign exchange market at the start of the New Year.
Recalled that the naira began the week on a mixed note, strengthening at the official window where it appreciated by ₦1.54 to close at ₦1,429.31/$, but weakening in the parallel market by ₦15.00 to ₦1,490.00/$.
As a result, the FX spread widened to 4.25%, up from 3.09% previously. The Nigerian FX market proved that with reforms, the market can be stable and more predictable, CardinalStone said in a report.
The investment firm said 2025 was characterised by improved market transparency and fair dealing among authorised dealers, leading to the Naira trading within a narrow and stable range.
The naira appreciated by 7.5% in 2025—the first gain in 13 years. The firm cited that liquidity conditions have also improved in the market, with daily average FX turnover across both the forward and spot markets settling at $421.4 billion, over 59.0% higher than the previous year’s value.
The development, according to analysts, encourages deposit money banks to resume the use of Naira debit cards for international transactions.
Due to persistent FX transparency and a favourable carry trade, foreign inflows into Nigeria reached their greatest level ever in 2025. The latter profited from both the increased OMO rate and the appreciation of the Naira, the investment firm said. Naira Rises to N1,419 after Historic Performance in 2025
