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Naira strengthens to ₦1,421.73 per dollar, marking the year’s highest gain.
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Surge attributed to strong foreign portfolio inflows and steady market liquidity.
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External reserves climb to $43.17 billion amid renewed investor confidence.
The naira recorded its strongest performance of 2025 at the close of October, settling at ₦1,421.73 per dollar in the Nigerian Foreign Exchange Market, according to new data from the Central Bank of Nigeria.
The local currency traded below the ₦1,500 mark throughout October, appreciating by 3.63 per cent from ₦1,475.34 recorded on September 30, 2025. It reached its weakest point at ₦1,475.35 on October 17 before recovering steadily.
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At the parallel market, the naira also firmed slightly, closing at ₦1,450 per dollar on Friday, according to CardinalStone’s market report.
In its weekly market review, AIICO Capital attributed the appreciation to sustained activities of foreign portfolio investors who increased dollar sales, improving liquidity and easing demand pressures.
“The steady inflow of foreign funds strengthened supply conditions across key benchmarks, resulting in consistent appreciation of the naira as USD availability outpaced demand,” AIICO Capital stated.
Meanwhile, Nigeria’s external reserves rose to $43.17 billion as of October 30, 2025 — up from $42.35 billion recorded a month earlier — reflecting a monthly increase of $819 million or 1.93 per cent.
Analysts described the development as a sign of stronger external buffers and growing investor confidence in Nigeria’s reform agenda.
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In a macroeconomic note, CSL Research highlighted the role of domestic oil production and the Dangote refinery in stabilising foreign exchange demand.
“A key driver behind this performance has been the resilience of the external sector. The narrowing of the import bill has helped reduce forex pressures, creating room for the naira to strengthen,” CSL Research said.
The firm also pointed to increased participation from global institutional investors holding long-term naira-denominated assets, supported by high-interest rates and improving credit ratings.
According to the report, investors who subscribed to one-year OMO bills in late 2024 at stop rates of about 24 per cent are now realising over 36 per cent returns in dollar terms — a trend that has boosted confidence in Nigerian markets.
CSL added that sustained CBN interventions, stronger trade balances, and rising offshore inflows have continued to support naira stability and bolster market optimism.
