The Nigerian naira appreciated to ₦1,526.15 against the US dollar on Wednesday, bolstered by lower demand pressures and sustained foreign exchange liquidity in the market.
The strengthening of the local currency has been largely attributed to improved investor confidence and the effectiveness of recent reforms in the country’s FX market, including the introduction of the BMatch system by the Central Bank of Nigeria (CBN) late last year.
According to analysts from Broadstreet, speculative hoarding of foreign currency is becoming riskier, with increased forex allocations to Bureau de Change (BDC) operators contributing to exchange rate stability.
Recent updates from the CBN showed that the naira appreciated from ₦1,529.57 recorded the previous day to ₦1,526.15 on Wednesday, marking a steady gain in the official FX market.
Despite the challenges of the global economic landscape, Nigeria’s medium-term outlook remains optimistic, with growth projected to hover around 3.5%, anchored by domestic reform efforts and macroeconomic policy adjustments.
The International Monetary Fund (IMF), in its latest assessment, applauded Nigeria’s progress in stabilizing its currency. The global financial institution acknowledged the positive impact of FX market reforms, including enhanced transparency, improved portfolio flows, and a stronger current account balance.
According to the IMF, “Reforms implemented by Nigerian authorities in the foreign exchange market have contributed to naira stability. These, combined with a rebound in food production, helped reduce inflation to 23.7% year-on-year in April 2025, down from the 2024 average of 31%, based on the backcasted rebased CPI released by the National Bureau of Statistics.”
The Fund projects further inflation easing in the medium term, driven by disciplined monetary policy and potential reductions in fuel prices.
IMF executive directors also acknowledged Nigeria’s efforts to rebuild external reserves and boost investor confidence through decisive foreign exchange market reforms. These reforms, they noted, have aided in price discovery and liquidity enhancement.
However, the IMF also urged Nigerian authorities to implement a comprehensive FX intervention strategy designed to curb excessive volatility. The directors emphasized that the exchange rate remains a crucial buffer against external economic shocks.
The appreciation of the naira, coupled with improving macroeconomic indicators, has sparked optimism about Nigeria’s economic direction as the country continues to recover from years of structural and policy challenges.
