The Nigerian naira has experienced a noticeable improvement in the foreign exchange market, thanks to the Central Bank of Nigeria’s (CBN) intervention, which saw the injection of $29 million to the market. The CBN’s actions have helped stabilize the local currency, mitigating the pressures stemming from foreign exchange demands linked to international payments.
As of Friday, September 12, 2025, official data confirmed that the naira gained ground, closing the week at N1,501.50 to the dollar. This positive movement reflects a 0.89% appreciation compared to the previous week, driven by improved liquidity and sustained dollar inflows. According to analysts at Cordros Capital Limited, the CBN’s sale of $29.1 million to authorised dealer banks played a pivotal role in supporting the naira during the week.
The Central Bank’s strategy has bolstered the country’s foreign exchange reserves, which have continued to rise, marking a tenth consecutive week of growth. In the latest update, Nigeria’s external reserves increased by $87.11 million, bringing the total to $41.66 billion. This growing reserve base provides a buffer against external economic shocks and demonstrates the CBN’s continued efforts to stabilise the naira.
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Alongside the official market, the parallel market also saw the naira strengthen. Traders in the informal sector exchanged the dollar for N1,510, reflecting a 1.85% gain. This uptick indicates renewed confidence among market players, who are now less wary of speculative activities that have previously exerted downward pressure on the currency.
In the broader context, global oil markets are facing downward pressure, with Brent crude prices slipping by 1.7% to $66.37 per barrel, while West Texas Intermediate (WTI) dropped by 2.0%, trading at $62.37. This drop is attributed to concerns over weakening demand in the U.S. and oversupply in the global market, though geopolitical tensions in the Middle East and Ukraine remain a factor.
Meanwhile, gold prices have remained stable, hovering near record highs. Despite a soft U.S. jobs report, which fuelled speculation of a potential Federal Reserve rate cut, gold prices have only dipped slightly. Spot gold traded at $3,632.49, while U.S. futures settled at $3,673.60, with investors remaining cautious amid inflationary pressures.
As the Nigerian economy faces these external and internal dynamics, the CBN’s intervention in the FX market continues to provide a much-needed cushion, supporting the naira’s resilience and the broader economic outlook.
