The Nigerian naira showed fresh strength in the official foreign exchange market on Tuesday, September 2, 2025, closing slightly higher against the United States dollar. Figures from the Nigerian Foreign Exchange Market indicated that the naira gained about 34 kobo, moving from ₦1,526.10/$1 to ₦1,525.76/$1 at the end of trading.
The local currency also improved its position against the British pound and the euro. Data revealed that the naira appreciated by ₦26.30 to trade at ₦2,040.03/£1, compared with ₦2,066.33/£1 recorded the previous day. Against the euro, the naira strengthened by ₦11.03, closing at ₦1,776.18/€1 from ₦1,787.21/€1.
In the parallel market, often called the black market, traders reported that the naira maintained stability. Rates on Wednesday showed exchanges at around ₦1,530–₦1,540 per dollar, ₦1,770–₦1,780 per euro, and ₦2,080–₦2,095 per pound sterling.
A snapshot of other exchange rates put the naira at ₦2.71 against the CFA franc, ₦213.48 to the Chinese yuan, ₦237.97 to the Danish krone, ₦10.27 to the Japanese yen, ₦406.70 to the Saudi riyal, ₦86.08 to the South African rand, and ₦1,897.37 to the Swiss franc.
Market experts explained that the stability of the naira is tied to improved foreign exchange liquidity, steady inflows from portfolio investors, and reforms introduced by the Central Bank of Nigeria under Governor Yemi Cardoso. According to them, ongoing policies have boosted confidence and created a healthier balance in the forex system.
Nigeria’s external reserves have also risen, with CBN data showing a climb to $40.654 billion, a $70 million increase in recent weeks. Analysts believe this growth gives the CBN more room to support the naira and keep the exchange rate steady. They further predict that the currency could maintain this momentum in the short term if inflows from exporters and international oil companies continue.
The outlook remains cautiously positive, with traders and analysts noting that sustained reforms, stronger reserves, and growing foreign investor interest could help the naira hold firm against major currencies.
