Naira Emerges as a Global Top Performer Against US Dollar
The Nigerian naira has achieved a significant milestone, ranking among the world's best-performing currencies against the US dollar. According to recent data, the naira has appreciated by 13.5% in recent months, securing the seventh position globally in currency strength. This performance is evident across both official and unofficial foreign exchange markets, signaling a robust recovery for Nigeria's economy.
Global Currency Rankings and Naira's Position
Data compiled by Visual Capitalist, which focuses on countries with a minimum GDP of $250 billion, highlights the naira's impressive surge. The Israeli shekel leads the pack with a 20.2% gain, followed by the South African rand at 16.4%. Nigeria's naira, with its 13.5% appreciation, reflects improved investor confidence and enhanced foreign exchange management strategies. Recent policy adjustments and efforts to stabilize the FX market have been pivotal in driving this currency recovery.
Key factors contributing to the naira's strength include:
- Increased capital inflows into the Nigerian banking sector
- Tighter monetary measures implemented by the Central Bank of Nigeria
- Shifting global capital flows and weakening US dollar trends
Recent Market Performance and Appreciation Trends
On Thursday, April 9, the naira demonstrated further gains in various segments of the foreign exchange market. In the black market, the currency improved by N20, trading at N1,390/$1 compared to the previous day's rate of N1,410/$1. Meanwhile, in the Nigerian Foreign Exchange Market (NAFEM) window, the naira appreciated by N12.50 or 0.9%, reaching N1,359.32/$1. Against the Euro, it gained N14.89 to sell at N1,589.18/€1, while holding steady against the Pound Sterling at N1,844.83/£1.
Surge in Foreign Capital Inflows into Banking Sector
Supporting the naira's performance, foreign capital inflows into Nigeria's banking sector have seen a dramatic increase. In 2025, inflows surged by 93.25% year-on-year to $13.53 billion, up from $7.00 billion in 2024. According to the National Bureau of Statistics, banks accounted for $13.53 billion out of the total $23.22 billion in foreign investment for 2025, representing 58.26% of total inflows. Quarterly data shows a steady rise, starting at $3.13 billion in the first quarter of 2025, a 51.3% increase from the same period in 2024.
This currency rally is part of a broader global trend, with several currencies posting double-digit gains against the US dollar over the past year. Factors such as improving economic fundamentals and changes in global monetary policy expectations have driven this shift, with the weakening US dollar adding further momentum.
