Nigeria’s currency, the naira, has strengthened to about ₦1,421 to the US dollar on the official foreign-exchange market on Friday, October 31, 2025, a notable improvement from earlier levels.
The rally is driven by improved liquidity, policy reforms by the Central Bank of Nigeria (CBN), stronger oil receipts and rising foreign portfolio inflows.
On the parallel market in Lagos the rate also firmed to around ₦1,450/$, narrowing the spread to the official rate and signalling convergence between formal and informal markets.
Analysts say the improved currency position reduces foreign-exchange risk for corporates, enhances the capital market outlook and supports economic stability ahead of year-end.
For Nigeria’s economy, a stronger naira means cheaper imports in naira terms (though inflation and competitiveness risks remain). It also signals investor belief in the currency’s stability.
Still, risks persist: debt servicing of external obligations, global interest rate pressures, and oil price volatility could pose headwinds.
Policy watchers will closely monitor whether the momentum holds into Q4.
