The Naira appreciated in the parallel (black) market on Friday, strengthening to ₦1,550 per US dollar, up from ₦1,555/$ recorded on Thursday, July 10, 2025.
However, in the official Nigerian Foreign Exchange Market (NFEM), the story was slightly different. The local currency depreciated to ₦1,532/$ from ₦1,531/$, reflecting a ₦1 drop despite ongoing stabilizing efforts by the Central Bank of Nigeria (CBN).
This narrowed the gap between both markets to ₦18/$, compared to ₦24/$ the previous day — a sign that CBN’s FX interventions may be aligning both rates more closely.
Naira Performance This Week: Mixed but Steady
- In the parallel market, the Naira weakened by ₦2.5 this week overall.
- In the official market, the Naira gained ₦15, after opening the week at ₦1,565/$.
- Throughout the week, the currency remained within the ₦1,500/$ threshold, a zone analysts now call the new “Naira stability benchmark.”
Analysts Praise CBN’s Strategy to Stabilize the Naira
Analysts at Afrinvest West Africa Limited, in their H1 2025 review and H2 forecast, noted the Naira’s resilience against the dollar, calling it the biggest surprise of the year so far.
They wrote:
“Contrary to our initial projection of ₦1,804.45/$ for 2025, the CBN has impressively stabilized the Naira within the range of ₦1,550.10 to ₦1,620/$. This is a major improvement compared to the record exchange rate declines in 2023 (down 48% to ₦907.11/$) and 2024 (down 41% to ₦1,538.25/$).”
Why the Naira Is Stabilizing in 2025
Afrinvest analysts credited this rare stability to several strategic moves by the CBN, including:
- Enhanced FX market transparency
- Technology-driven FX trading reforms
- Targeted CBN interventions
- High-yielding OMO bills (which attracted foreign investors)
- Reduced FX demand for fuel imports due to Dangote Refinery’s operations
- Clapdown on speculative currency trading
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Thanks to these measures, Afrinvest has revised its 2025 average exchange rate projection to a more positive ₦1,577.25/$.
Bottom Line
The Naira’s resilience at ₦1,500/$ — despite market fluctuations — is giving hope to businesses and investors who seek exchange rate predictability.
As CBN continues to roll out policies, analysts believe the second half of 2025 could see even more stability, especially with local production ramping up and FX reforms deepening.
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