Nigeria’s local currency, the Naira, delivered one of its most stable performances in months throughout September 2025, consistently trading below the N1,500 per dollar mark for more than two weeks straight.
Data obtained from the Central Bank of Nigeria (CBN) revealed that the Naira closed the month at N1,478/$1 on September 30, showing a significant improvement from its opening rate of N1,527.9/$1 on September 1.
Sustained Performance Throughout September
According to the CBN figures, the turning point came on September 15, when the exchange rate dipped to N1,495/$1, breaking below the N1,500 threshold for the first time that month. From that date, the currency continued to gain ground, closing at N1,486.8/$1 on September 24, N1,485/$1 on September 25, N1,480/$1 on September 26, and N1,480.15/$1 on September 29, before settling at N1,478/$1 to wrap up the month. The performance marked a stretch of consistency not seen in months, reflecting relative stability in the foreign exchange market.
Comparing Monthly Movements
Looking at month-to-month movements, September’s trajectory highlighted a sharp contrast with earlier months in 2025.
- December 2024 ended at N1,535/$1.
- January 2025 improved to N1,475/$1 — the best monthly close recorded so far this year.
- February weakened slightly to N1,500/$1, while March and April saw further depreciation to N1,537/$1 and N1,602/$1 respectively.
- May was the worst month of the year with the Naira closing at N1,585.5/$1.
- June saw a moderate rebound to N1,532/$1, while July and August closed at N1,534/$1 and N1,531/$1 respectively.
By comparison, September’s closing rate of N1,478/$1 represented the strongest performance since January 2025. Unlike January, however, where only two days recorded sub-N1,500 levels, September offered a more sustained run of stability throughout the second half of the month.
Foreign Reserves Cross $42 Billion
Another highlight during September was the performance of Nigeria’s external reserves, which surged above $42 billion for the first time in over six years. CBN data showed reserves reached $42.3 billion as of September 29, 2025, representing an increase of more than $692 million within just 18 days. The last time reserves reached a similar level was on September 27, 2019, when they stood at $41.992 billion.
CBN Governor, Olayemi Cardoso, speaking at the conclusion of the Monetary Policy Committee (MPC) meeting on September 22, attributed the boost to growing investor confidence spurred by ongoing reforms, enhanced transparency, and the adoption of a more market-driven exchange rate system. He reiterated the Bank’s focus on reducing inflation to single digits while ensuring exchange rate stability and fiscal discipline, especially as the country heads into a politically sensitive pre-election year in 2026.
“Exchange rate stability is key. If we are going to continue to moderate inflation the way we have, exchange rate stability is key. Fiscal discipline is key,” Cardoso stressed.
Monetary Policy Decisions
The MPC also introduced new policy adjustments during the month to consolidate economic stability.
- The Monetary Policy Rate (MPR) was cut by 50 basis points from 27.5% to 27%.
- The asymmetric corridor around the MPR was adjusted to +250/-250 basis points, from the previous +500/-100 basis points.
- The Cash Reserve Ratio (CRR) for commercial banks was maintained at 45%, while merchant banks’ CRR remained at 16%.
These measures, according to the apex bank, were designed to strike a balance between stimulating economic activity and ensuring price stability. With the Naira showing renewed resilience and foreign reserves reaching record highs, September 2025 has emerged as one of the most encouraging months for Nigeria’s macroeconomic outlook in recent times.
