The Nigerian Naira opened September 2025 on strong footing, sustaining the upward momentum recorded in late August across both the official and parallel foreign exchange markets.
The continued appreciation is viewed by market participants as a sign of improved liquidity and shifting investor sentiment, offering a boost to confidence in the capital market.
Data for the week show steady gains in the parallel market, where the Naira strengthened from ₦1,539/$1 at the start of the week to ₦1,535/$1 by Thursday, September 4. This marks a clear improvement from early August, when the currency traded within a weaker band of ₦1,550/$1 to ₦1,570/$1.
The official market reflected the same trend, appreciating from ₦1,527.9/$1 on Monday to close the week at ₦1,511.5/$1.
Analysts link the positive performance to multiple drivers, including higher diaspora remittances, renewed interest from foreign portfolio investors (FPIs), and rising foreign reserves, which bolster the Central Bank of Nigeria’s capacity to stabilise the currency.
Additional support has come from increased liquidity provided by non-bank corporates, alongside growing use of the Naira-Yuan swap deal by Chinese firms operating in Nigeria, which reduces dependence on the U.S. dollar.
Market watchers believe the Naira’s sustained strength could mark a turning point for Nigeria’s capital market. A more stable and appreciating currency lowers exchange rate risks for foreign investors, making local equities and fixed-income instruments more attractive.
Domestic investors also stand to benefit, as a predictable currency environment provides firmer ground for long-term planning and investment.
Analysts caution, however, that the outlook will ultimately hinge on consistent policy execution and continued foreign exchange inflows. For now, the currency’s stability offers a rare moment of optimism for both the market and the broader economy.