The Nigerian naira has recently shown significant strength against the US dollar, marking a notable recovery in both the official and parallel markets as of September 16, 2025. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1,497.5 per US dollar, its strongest level since March 2025, reflecting a 0.47% gain from the previous session’s rate of N1,504.5/$. Over the past month, the naira has appreciated by 2.81%, and over the last 12 months, it has gained 9.06%, demonstrating a steady recovery from earlier volatility. This performance is primarily driven by improved foreign exchange (FX) liquidity, with daily turnover in the official market reaching $250.85 million, a significant jump from $160.8 million the previous day. Reduced demand pressure from corporate entities and foreign investors has also played a key role in stabilizing the naira’s value.In the parallel (black) market, the naira has similarly strengthened, trading at around N1,525/$ on September 9, 2025, a notable improvement from its August low of N1,700/$.

This rebound has narrowed the gap between the official and parallel market rates, signaling greater market stability. Bureau de Change (BDC) operators attribute this to increased FX supply, particularly from diaspora remittances, which have surged by 200% to $600 million in recent months. These inflows have significantly eased pressure on the naira, supporting its appreciation in the informal market and aligning it more closely with the official rate.

Looking ahead, analysts and traders are optimistic about the naira’s trajectory, with a CBN Monetary Policy Committee member, Bala Bello, projecting it could strengthen to around N1,400/$ by the end of 2025 if current trends persist. However, challenges such as speculative activities in the parallel market and potential volatility in global oil prices could pose risks. Sustained FX inflows and consistent policy measures will be critical to maintaining these gains.