The naira gained ground on the official foreign exchange market on Thursday, closing at ₦1,455.23 per dollar, a 1.36% appreciation from ₦1,475.34 recorded on September 30.
This marks the first time since May 2024 that the exchange rate has dipped into the ₦1,400 range, reflecting the currency’s strongest performance so far this year.
Analysts attribute the improvement partly to the electronic foreign exchange matching system (EFEMS), introduced by the Central Bank of Nigeria (CBN) in December 2024. At its launch, the naira was trading at ₦1,660 per dollar, making the current rate a significant rebound.
The parallel market also mirrored this trend, with the naira appreciating to ₦1,480 per dollar, compared to ₦1,485 at the end of September — its best level this year.
President Bola Tinubu, in his Independence Day broadcast on October 1, pointed to the currency’s recovery as evidence of progress in economic reforms.
“The naira has stabilised from the turbulence and volatility witnessed in 2023 and 2024. The gap between the official rate and the unofficial market has reduced substantially, following FX reforms and fresh capital and remittance inflows,” the president said.
Adding to the optimism, Abdul Samad Rabiu, chairman of BUA Group, predicted last week that the naira could strengthen further to between ₦1,300 and ₦1,400 per dollar by the end of 2025.