Naira Strengthens to Six-Month High at N1,526/$1 as Non-Bank Corporates Boost FX Liquidity
Story: Written Zara Setpember 2,2025
The Nigerian naira climbed to its strongest level in six months on Monday, closing at N1,526.09 per dollar in the official foreign exchange (FX) market, according to data from the Central Bank of Nigeria (CBN). The rally was driven by increased inflows from non-bank corporates, which bolstered liquidity in the market.
The last time the naira traded around this level was on July 14, 2025, when it exchanged at N1,518.73 per dollar. Monday’s appreciation marked a 0.4% gain from Friday’s close of N1,531.57, the final trading day of August.
In the parallel market, also known as the black market, the naira remained stable at N1,540/$1, a level it has held since August 25, 2025.
FX Inflows Driving Naira Gains
Total inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEM) stood at $706.70 million, slightly lower than the $751.70 million recorded the previous week. A breakdown of the sources showed:
- Non-bank corporates: $250 million (35.38%)
- Foreign Portfolio Investors (FPIs): $198.30 million (28.06%)
- Exporters: $145.10 million (20.53%)
- Central Bank of Nigeria (CBN): $88.50 million (12.52%)
- Individuals & others: 3.51% combined
The increased participation of non-bank corporates highlights their growing role in improving FX liquidity and supporting the naira.
External Reserves Rise
CBN data also revealed that Nigeria’s gross external reserves increased by $161.06 million (0.46% week-on-week) to $41.27 billion, strengthening investor confidence and easing pressure on the local currency.
August Performance
In August 2025, the naira appreciated marginally, closing the month at N1,531.57/$1 in the official market, supported by higher reserves, foreign portfolio inflows, and diaspora remittances. At the parallel market, the naira also gained 0.97% week-on-week to settle at N1,540/$1.
The latest performance signals improved liquidity conditions, raising hopes of further stability in Nigeria’s FX market as Q4 approaches.
