The Nigerian Naira closes January 2025 at N1,475 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), marking its strongest value since June 2024.
On June 11, 2024, the exchange rate stood at N1,473/$1, making it the last time the currency traded at a similar level. Compared to N1,535/$1 recorded on December 31, 2024, the Naira gains N60, representing a 3.91% appreciation within a month.
January Market Trends
Throughout January 2025, the Naira fluctuates between N1,560 and N1,506 per dollar. However, it strengthens significantly in the last two days of the month, reaching N1,493/$1 on January 30 before appreciating further to N1,475/$1 on January 31.
Year-on-Year Performance
At the end of January 2024, NAFEM recorded an exchange rate of N1,455.59/$1, meaning the Naira depreciates by approximately 1.33% year-on-year.
While the recent appreciation signals some stability, analysts caution that exchange rate fluctuations persist. The Naira’s value is influenced by factors such as global oil prices, diaspora remittances, and investor confidence in Nigeria’s economic policies. Experts suggest that targeted interventions by the Central Bank of Nigeria (CBN) may be necessary to sustain stability in the foreign exchange market.
CBN’s Forex Policies and Market Interventions
The CBN continues implementing measures to stabilize the Naira, including:
- Stricter regulations on Bureau De Change (BDC) operators
- Increased dollar supply in the official market
- Enforcement of the Nigeria Foreign Exchange (FX) Code
CBN Governor Olayemi Cardoso emphasizes that violations of the FX Code will lead to penalties, reinforcing the regulator’s commitment to transparency and compliance in the forex market.
“The FX Code is a regulatory framework, not just a set of guidelines. Under the CBN Act 2007 and the BOFIA Act 2020, breaches will attract penalties and administrative actions,” Cardoso states.
CBN Provides Relief for BDC Operators
In another development, the CBN announces a waiver for the 2025 annual license renewal fee for Bureau De Change (BDC) operators. According to a circular signed by John S. Onojah, acting director of the Financial Policy and Regulation Department, this move aims to reduce financial pressure on BDC operators while ensuring a smooth transition to the new BDC regulatory framework.
This waiver is part of the CBN’s broader strategy to enhance stability, transparency, and efficiency in the foreign exchange market, following the introduction of the “Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024.”
With these measures in place, stakeholders anticipate further improvements in the forex market, while the CBN remains focused on ensuring sustained exchange rate stability.