The Nigerian naira closed 2025 on a stronger note, settling at N1,429/$1 on December 31.
This is according to data from the Central Bank of Nigeria (CBN).
This represents an improvement from N1,450.01/$1 at the start of December, capping a gradual recovery in the final quarter of the year.
The year-end result marked a turnaround from early weakness, with the naira recovering from N1,538.50/$1 at the start of 2025, near its 2024 close of N1,535/$1, as FX reforms and tighter monetary policies helped stabilise the currency.
Data from the CBN shows that while volatility persisted for much of the year, the naira’s trajectory improved notably from September through December, pointing to growing stability in the FX market.
CBN data further shows that the naira experienced its most intense pressure in the first half of 2025.
In February, the currency traded almost flat, opening at N1,499/$1 and closing at N1,500/$1. March ended weaker at N1,537/$1, while April marked the low point of the year as the naira depreciated sharply to N1,602/$1 by month-end.
A mild correction began in May, with the naira closing at N1,585/$1, before a stronger rebound in June, when it appreciated to N1,532/$1.
July saw marginal weakness, but August and September recorded renewed strength, with the currency closing September at N1,478/$1, trading below the N1,500/$1 threshold for most of the month.
The rally continued into October, as the naira strengthened to N1,427.5/$1, one of its strongest levels in 2025. Although November ended slightly weaker at N1,446.9/$1, the naira entered December at N1,450.01/$1 and closed the year at N1,429/$1.
Analysts attribute the late-year recovery to a combination of improved foreign exchange inflows, tighter monetary policy, and reduced speculative demand.
“Reforms in the FX market, including improved price discovery and increased transparency, also helped support the naira in the second half of the year,” Ade Omotosho, an analyst at Kwik Securities, said.
The recovery followed months of pressure driven by high inflation, strong dollar demand, and external financing constraints.
Earlier in the year, delayed FX inflows and elevated import demand contributed to the sharp depreciation recorded between March and April.
While the naira’s rebound does not erase structural challenges in Nigeria’s FX market, the steadier performance in the final quarter suggests that policy measures began to gain traction as the year progressed.
The naira’s 2025 performance points to improving stability compared to previous years, even as vulnerabilities remain.
The naira’s 2025 performance points to improving stability compared to previous years, even as vulnerabilities remain.
Ending the year stronger than it began offers cautious optimism heading into 2026, particularly if policy consistency is maintained and FX inflows continue to improve.
However, analysts warn that sustained gains will depend on managing inflation, attracting long-term capital inflows, and maintaining credibility in FX reforms.
Without these, the naira could remain exposed to renewed volatility despite its stronger year-end position.
CBN has said it is finalising a revised foreign exchange (FX) manual that will soon be released as part of broader efforts to deepen market participation, improve transparency and reinforce confidence in the naira.
In January 2025, CBN approved the release of the Nigerian Foreign Exchange (FX) Code, a move aimed at fostering ethical conduct and transparency within the nation’s foreign exchange market.
In its 2026 Macroeconomic Outlook, the CBN said Nigeria’s external reserve is projected to rise to $51.04 billion in 2026, supported by stronger oil earnings, foreign exchange (FX) market reforms, and improved external inflows.