The Nigerian naira closed 2025 at ₦1,436 to the US dollar, marking a year‑on‑year appreciation of 7.74%, Central Bank of Nigeria and forex market data show. The currency’s stronger finish reflects renewed market confidence after a year of policy adjustments and economic reforms.
Analysts credited a mix of monetary and fiscal measures for the turnaround, including tighter monetary policy, targeted foreign‑exchange market interventions and efforts to boost FX inflows. Improved oil receipts, remittances and portfolio inflows were also cited as contributing factors that helped shore up external liquidity during the year.
Governor Cardoso’s management of currency policy drew praise from market participants, who said the central bank’s actions helped stabilise markets and reduce volatility. Observers cautioned, however, that the durability of the gain will depend on ongoing policy consistency, global commodity prices and domestic inflation dynamics.
Market participants noted potential benefits from a stronger naira, including some relief for import costs and downward pressure on imported inflation, but warned that broader economic indicators — including trade balances and FX market depth — must be monitored to assess longer‑term impact.
