The Nigerian naira has demonstrated remarkable strength against major global currencies, particularly the US dollar, marking a significant turnaround in the country's foreign exchange market performance.
Naira's Performance Across Markets
Recent data from the Central Bank of Nigeria reveals that the naira closed at N1,442.92 against the US dollar on Wednesday, November 26, 2025. This represents an improvement from the previous day's rate of N1,446.31/$, indicating a gain of N3.39 for the local currency.
The appreciation was observed in both official and unofficial markets, signaling broad-based confidence in Nigeria's economic management. The parallel market rates have shown similar positive trends, reflecting increased stability across trading platforms.
Mixed Performance Against Other Currencies
While the naira strengthened against the dollar and euro, it experienced slight depreciation against the British pound. Detailed exchange rate comparisons show the pound sterling trading at N1,906.53 on Wednesday compared to N1,902.19 on Tuesday.
However, the euro showed marginal gains, closing at N1,670.90 against N1,671.07 the previous day. This mixed but overall stable performance indicates balanced market conditions and reduced volatility in currency trading.
CBN Governor's Assessment of Market Progress
During the recently concluded 303rd Monetary Policy Committee meeting, CBN Governor Yemi Cardoso highlighted substantial improvements in the foreign exchange market. He emphasized that the spread between official and parallel market rates has narrowed to just 2%, a dramatic improvement from the approximately 60% gap observed in previous years.
Cardoso expressed satisfaction with the current market transparency, noting that daily foreign exchange activity now reaches around half a billion dollars without requiring central bank intervention. He described this development as unprecedented in Nigeria's recent economic history.
The CBN governor connected market stability to broader economic benefits, stating that stability naturally attracts investment, which subsequently drives growth. This progression, he emphasized, will ultimately deliver tangible relief for Nigerian citizens through improved economic conditions.
External Reserves and Market Confidence
Supporting the naira's positive performance, Nigeria's external reserves have shown significant growth. Recent reports indicate that reserves increased by $650 million week-on-week to reach $44.18 billion as of November 20, 2025, up from $43.53 billion recorded on November 13.
Financial analysts at United Capital Plc have confirmed that the strengthened reserves now provide over eight months of import cover, substantially boosting market confidence. The firm also reported that October 2025 witnessed the highest foreign exchange inflows since May, reflecting strong investor appetite for Nigerian assets.
The combination of reserve accumulation, narrowed market spreads, and increased foreign participation points toward sustained stability in Nigeria's foreign exchange environment, offering hope for continued economic improvement in the coming months.
