The Naira closed the week on a stable note, maintaining its position at ₦1,586.15 to the Dollar in the official foreign exchange market on Friday.
The local currency had traded at the same rate on Thursday, after gaining ₦4.59 earlier that day.
According to data from the Central Bank of Nigeria (CBN), the Naira strengthened on Monday and Tuesday, exchanging at ₦1,583.73 and ₦1,579.40 respectively. However, it saw a modest decline on Wednesday, falling to ₦1,590.74 against the Dollar.
Since December 2024, the Naira has shown relative stability, a trend attributed to ongoing reforms introduced by the CBN alongside fiscal support measures from the federal government.
These policy shifts have been regarded by financial analysts as indicators of renewed investor confidence and improved liquidity in the foreign exchange market.
Experts have continued to commend the economic measures taken by the Tinubu administration, particularly in the area of foreign exchange. They point to market liberalisation, the unification of exchange rates, and enhanced transparency as key steps that have fortified Nigeria’s foreign exchange system.
President Bola Tinubu, in his second anniversary address on Thursday, spoke on the positive outcomes of the reforms.
“While FX revaluation raised our debt-to-GDP ratio to 53 per cent, debt service-to-revenue fell from 100 to under 40 per cent,” the President said.
He also noted that the government had settled outstanding debts owed to the International Monetary Fund (IMF) and significantly improved the country’s external reserves, which grew from $4 billion in 2023 to over $23 billion by the end of 2024.