The latest performance represents the naira’s strongest showing in 2025 and the best level since the Central Bank of Nigeria (CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS) in December 2024. At the time of the transition, the naira had weakened to around N1,660/$ at the official window.

In his Independence Day broadcast on October 1, President Bola Tinubu said the reforms were yielding results.

“The naira has stabilised from the turbulence and volatility witnessed in 2023 and 2024,” he said. “The gap between the official rate and the unofficial market has reduced substantially, following FX reforms and fresh capital and remittance inflows.”

Market optimism was also boosted by comments from Abdul Samad Rabiu, chairman of BUA Group, who predicted on September 25 that the naira could strengthen further to between N1,300 and N1,400 by year end.

The recent gains highlight renewed confidence in Nigeria’s FX market, though analysts caution that sustained appreciation will depend on continued inflows, effective CBN intervention, and stability in global oil markets.