Nigeria’s currency reaches best performance since new forex system launched in December 2024, narrowing gap between official and parallel markets.
LAGOS, NIGERIA – The naira strengthened to N1,455.23 per dollar at Nigeria’s official foreign exchange market on Thursday, marking its strongest performance in 2025. That’s a 1.36 percent gain from the N1,475.34 rate on September 30.
This appears to be the currency’s best showing since the Central Bank of Nigeria launched its electronic foreign exchange matching system in December 2024. Before Thursday, the naira last traded near N1,400 per dollar back in May 2024, almost five months ago.
When EFEMS started in December, the naira was changing hands at N1,660 per dollar. The new system replaced Nigeria’s previous forex trading platform, though experts remain divided on whether the improvement stems from the technology itself or broader economic factors.
The parallel market saw similar gains. The naira strengthened to N1,480 per dollar on Thursday, up from N1,485 on September 30, its best parallel market performance on record.
President Bola Tinubu highlighted the currency’s recovery in his October 1 Independence Day speech, crediting recent reforms. “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,” Tinubu added. Right now, that gap sits at just N25 per dollar, a narrow margin by Nigerian standards.
On September 25, Abdul Samad Rabiu, chairman of BUA Group, went further with his optimism. He predicted the naira could reach somewhere between N1,300 and N1,400 per dollar by year’s end. Since EFEMS launched, the currency has climbed 12.3 percent overall.
