Naira rallies to N1,455 to US Dollar as Nigeria’s external reserves hit $43bn

*The Nigerian Naira rallies against the United States Dollar, as the West African country’s local currency Thursday, October 2, continued exchanging at N1,455 to a Dollar

Isola Moses | ConsumerConnect

The Nigerian Naira has rallied against the United States (US) Dollar, as the country’s local currency Thursday, October 2, 2025, continued exchanging at N1,455 to a Dollar.

ConsumerConnect learnt the Foreign Exchange (Forex) speculation declined at an all-time low as the gap between the official and parallel market rates significantly dropped.

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The Naira, which has sustained rally across markets in recent months, trading at N1,455/$ as of Friday, according to the Nigeria Foreign Exchange Market (NFEM), and N1,460 to N1,470/$ in the black market.

The Naira is reportedly making its strongest gain this year with the improvement attributed to a noticeable increase in Nigeria’s foreign reserves to $43.05 billion and drop in speculative Forex activities.

Market analysts noted that the far-reaching impact of the Central Bank of Nigeria’s (CBN) reforms has continued to drive positive sentiments and investor confidence across markets.

As a country’s currency is an instrument of her pride, so it is for the Nigeria Naira.

The local currency had experienced a turbulent past that saw it lose its significant value is almost over, according to analysts.

However, the Naira rebound is being driven by a combination of stronger demand for the Naira, reduced speculative trading, and rising foreign reserves now at $43.05 billion.

Besides, the development is attributed to Forex reforms instituted by the Olayemi Cardoso-led CBN.

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These are now yielding great benefits from reduction in Forex speculation and narrowing of gaps between official and parallel markets, experts noted.

The current CBN leadership, report said, has continued to take major steps towards keeping the Naira stable in line with its exchange rate stability objective.

The banking sector regulator is also boosting Forex supply to retail end users, reducing distortions in the market while maintaining effective foreign reserves management and accretions, according to report.

It was gathered the injection of liquidity into the market and rising compliance with Forex regulations have reduced sharp depreciation of the naira at official and parallel markets and buoyed foreign investors’ interest in the domestic economy.

The Naira stability is also driven by inflows from Foreign Portfolio Investors (FPIs), substantial contributions from International Oil Companies (IOCs), and the CBN’s interventions to authorised dealers.

There is also renewed interest of Foreign Portfolio Investors (FPIs) in the FX market—driven by improved market confidence, a more efficient FX framework, and strengthening macroeconomic conditions.

Commenting on the improvement during the recent 302nd Monetary Policy Committee’s (MPC) meeting, in Abuja, FCT, Cardoso announced that gross external reserves remained robust at $43.05 billion September 11, 2025, compared with $40.51 billion at end-July 2025 with an import cover of 8.28 months.

He stated: “Similarly, the second quarter 2025 current account balance recorded a significant surplus of $5.28 billion compared with $2.85 billion in the first quarter of 2025.”

What Forex dealers say

I’m connection with the hitherto rife speculations in the Forex market, Garuba Sarki, a Bureaux De Change (BDC) trader at Marina, on Lagos Island, said several dealers had lost huge funds as they sold below purchase rates as exchange rate gap narrowed.

Sarki stated: “I know some BDC operators that sold dollars below the purchasing rate.

“This is expected to continue in the weeks ahead.

“Also, the expected dollar inflows to the economy will help strengthen the naira position against the dollar.”

Analysts at Commercio Partners also attributed the rally and gradual narrowing of the exchange rate gap to a combination of stronger demand for the Naira, reduced speculative trading, and improved foreign reserves, Daily Trust report said.

In his remarks, Ifeanyi Ubah, Head of Research at Commercio Partners, expressed optimism that the positive sentiment would be sustained in the near term, supported by increasing external buffers.

Ubah noted: “Nigeria’s rising external reserves are reflecting a healthier external position for the country.

“With reserves strengthening, speculative activity subsiding, and oil earnings supporting inflows, many market watchers believe the naira’s current rally has a stronger foundation compared to previous cycles of volatility.”

Urging caution, other experts hinted that sustaining the current momentum, however, would depend on the Nigerian Government’s ability to maintain macroeconomic discipline, boost crude oil production, and diversify export earnings.

Aminu Gwadabe, President of Association of Bureaux De Change Operators of Nigeria (ABCON), also said key policies, including the Foreign Exchange Code, rising investors’ confidence, and foreign direct investment supporting policies are effectively putting Forex speculators in check in Nigeria.

According him, Forex Code implementation is comprehensively addressing various aspects of market conduct and practices in the West African country.

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