The Nigerian naira surged to a 10-month high in the official foreign exchange market on Wednesday, October 29, reflecting growing investor confidence and improved market liquidity. According to data from the Nigerian Foreign Exchange Market (NFEM), the naira appreciated to N1,444.42 per dollar a 0.27 percent gain from Tuesday’s closing rate of N1,448.32 per dollar marking its strongest performance since December 2024.
The rally extended beyond the official market. On the parallel market, the naira traded at N1,465 per dollar, gaining N10 from the previous session. At GTBank, it appreciated by N8 to close at N1,454 per dollar. Analysts say the currency’s strong showing signals renewed optimism among investors who are increasingly shifting from dollar holdings to naira-denominated assets.
The local currency also recorded gains against major international currencies. It appreciated by N10.36 against the British pound to trade at N1,919.09 per pound and strengthened by N4.26 against the euro to close at N1,681.16 per euro.
Market analysts attributed the naira’s sustained appreciation to a combination of factors, including rising foreign exchange inflows, increased oil revenues, and higher diaspora remittances. A significant boost also came from the Financial Action Task Force’s (FATF) decision to remove Nigeria from its grey list — a development that has improved investor sentiment and restored confidence in the country’s financial system.
Foreign direct investment has also surged, with inflows climbing by $272.6 million in recent weeks. Meanwhile, Nigeria’s external reserves crossed the $43 billion mark for the first time in 2025, further strengthening the central bank’s ability to stabilize the market.
The continued rally of the naira has drawn attention from key business leaders. Africa’s richest man, Aliko Dangote, recently advised Nigerians holding US dollars to sell, citing growing signs of stability and strength in the local currency.
With rising foreign inflows, improved fiscal discipline, and growing investor confidence, analysts believe the naira may sustain its momentum in the near term positioning Nigeria’s economy for greater resilience and long-term recovery.
Leave a comment