Naira gains as dollar crashes to N1,484.13

The naira has maintained relative stability as the dollar on Tuesday crashed to N1,484.13 in the official foreign exchange (FX) market.

At the close of trading on Tuesday, the dollar was quoted at N1,484.13, representing a N13.33 appreciation over N1,497.46 quoted on Monday at the Nigerian Foreign Exchange Market (NFEM), data from the Central Bank of Nigeria (CBN) showed.

In the parallel market, also known as the black market, the naira steadied at N1,525 per dollar. Guaranty Trust Bank (GTBank) quoted an exchange rate of N1,515 per dollar for international transactions on Tuesday, up from N1,510 per dollar on Monday, a N5 depreciation.

Year-to-date, the naira has appreciated by N43.9 or 2.9%, after strengthening to N1,497.46 on September 15, 2025, from N1,541.36 at the beginning of the year.

According to a report by Comercio Partners, the naira exchange rate to the dollar was stable in August, trading within the N1,530–N1,540 band, which provided stability to the prices of goods and services.

This, according to the Firm has helped anchor inflation and strengthen investor sentiment. The stability can be attributed to steady inflows and increased use of official FX channels, as the unification of the exchange rate has minimised opportunities for arbitrage.

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Sustained naira stability will be critical in consolidating disinflation gains and maintaining macroeconomic confidence. While risks remain tied to external shocks such as fluctuations in oil prices or shifts in global capital flows.

“We do not foresee any significant near-term events that could negatively impact the currency”, analysts at Comercio Partners said.

Analysts at Coronation Merchant Bank Research, said “we reiterate our expectation for the market rate to hover around N1,500/$ and N1,600/$ given by the Central Bank, an increased confidence from Foreign Portfolio Investment (FPI).

Lastcweek, the total FX inflows, fell to $550.90 million, slightly below the $567.20 million recorded the previous week, according to Coronation Merchant Bank Research.

Foreign Portfolio Investment was the largest contributor, accounting for $303.8 million or 55.15%. Exporters provided 17.61%, while non-bank corporates contributed $91.3 million or 17.57%. Other corporates accounted for $23.8 million (4.32 percent), Foreign Direct Investment (FDI) stood at $18.7 million (3.39%), the CBN contributed $13.0 million (2.36%), and individuals supplied $3.3 million (0.60%). Notably, the CBN did not make direct interventions during the week.

Nigeria’s gross external reserves also rose by $357.84 million or 0.87% to $41.66 billion as of Thursday, supported by steady daily accretions.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.