The Naira continued its steady appreciation streak in October, strengthening to N1427.5 per dollar at the close of trading on Friday, October 31, 2025.
This is according to data published on the Central Bank of Nigeria (CBN) website.
According to the data, this marks the second consecutive week of gains, as the currency appreciated from N1452.5/$1 on Monday to N1427.5/$1 on Friday, reflecting a sustained rally driven by improved market confidence and increased foreign exchange liquidity.
During the week, the Naira traded at N1447/$1 on Tuesday, N1445/$1 on Wednesday, and N1431/$1 on Thursday, maintaining a consistent upward trajectory throughout the five-day trading window.
The last recorded depreciation was on October 15, 2025, further highlighting the ongoing positive trend.
On a week-on-week basis, the Naira strengthened by 1.9 percent, closing at N1427.5/$1 compared to N1455/$1 the previous week.
This improvement also represents a notable rebound from N1461/$1 recorded two weeks earlier.
Analysts say this demonstrates growing resilience in Nigeria’s foreign exchange market.
Market analysts attribute the currency’s improved performance to increased dollar inflows, enhanced CBN liquidity interventions, and stabilizing investor confidence in the government’s ongoing monetary reforms.
Complementing the Naira’s appreciation, Nigeria’s foreign reserves climbed to $43.17 billion, up from $42.8 billion recorded the previous week.
This represents one of the strongest reserve positions seen in months and underscores the CBN’s prudent management and the success of ongoing reforms.
The steady rise in reserves, according to financial experts, reflects a combination of enhanced dollar inflows, rising oil revenues, increased diaspora remittances, and improved investor confidence following Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list.
“The combination of improved reserves, stronger inflows, and renewed policy discipline is clearly helping the Naira regain ground,” said Kitan Babajide, a Lagos-based financial analyst. “However, sustaining these gains will depend on maintaining fiscal prudence, ensuring transparent FX management, and accelerating structural economic reforms.”
Speaking earlier during the week with Naijaonpoint in Abuja, several experts noted that the development is expected to attract more foreign investment and improve liquidity in the forex market.
Economist and former Director-General of the Lagos Chambers of Commerce and Industries (LCCI), Dr. Muda Yusuf, also emphasized that the development reflects improved regulatory oversight and could strengthen Nigeria’s macroeconomic fundamentals.
“The exit from the FATF grey list will boost FDI because of the elevated level of confidence in Nigeria. If the capital inflows improve, it will help the forex environment. Because, if perception is positive, FDI is likely to improve, all other things being equal,” Yusuf said.
“The exit from the FATF grey list will boost FDI because of the elevated level of confidence in Nigeria. If the capital inflows improve, it will help the forex environment. Because, if perception is positive, FDI is likely to improve, all other things being equal,” Yusuf said.
They said the move will enhance Nigeria’s ability to access global financial markets, reduce restrictions on correspondent banking relationships, and foster smoother international transactions.
With the Naira posting consistent gains and reserves edging higher, market observers remain cautiously optimistic.
Sustained fiscal discipline, transparent FX management, and ongoing structural reforms are expected to further strengthen the local currency in the coming weeks.
Other experts attribute the gains to rising oil revenues, improved foreign reserves, and increased diaspora remittances.