Naira Hits 5-Month High at N1,497.5/$ in Official Market

The Nigerian naira reached its strongest level in five months on September 16, 2025, trading at N1,497.5 per U.S. dollar. This marks a modest 0.21% improvement from the previous rate of N1,501.49/$ on September 12.

The latest figure stands as the best since March 4, when it last hit N1,491.67/$.

Steady Improvement on NFEM Platform

The Nigeria Foreign Exchange Market (NFEM), which manages official currency trading, reports consistent gains for the naira since early September. From September 1 to 4, the rate climbed to N1,526.09/$, N1,526.05/$, N1,521.45/$, and N1,514.86/$.

The upward trend continued, with values at N1,506.84/$, N1,506.08/$, and N1,500.91/$ from September 8 to 10, before a slight dip to N1,502.13/$ on September 11.

Parallel Market Trends

In the informal parallel market, the naira also strengthened to N1,535/$ on September 16, up 0.32% from N1,540/$ the day before.

The currency has shown relative steadiness in this segment throughout the month. It started at N1,545/$ on September 1, held at N1,400/$ for September 2 and 3, then returned to N1,545/$.

By September 8, it improved to N1,525/$, stayed the same on September 9, fell to N1,535/$ on September 10, and reached N1,540/$ on September 11.

Expert Outlook and Reserves Boost

Analysts from Coronation expect the naira to remain stable in the near term, supported by consistent foreign inflows and rising reserves.

Nigeria’s gross external reserves grew to $41.69 billion as of September 13, up from recent levels. This increase should enhance confidence and aid the Central Bank of Nigeria (CBN) in maintaining balance.

However, experts caution that long-term stability requires deeper changes, such as diversifying foreign exchange sources and attracting lasting investments. Short-term portfolio funds may not suffice, especially with potential demand spikes before the holiday season.

Path to Sustained Recovery

The naira’s drop below N1,500/$ reflects growing market trust. Yet, its ability to hold this ground will depend on handling external shocks and speculative pressures in the coming weeks.

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