Naira roars back, records major gains against Dollar

By Grace Alegba

In a positive development for Nigeria’s economy, the naira appreciated by N3.42 against the U.S. dollar on Wednesday, closing at N1,526.15 at the official market, according to data from the Central Bank of Nigeria (CBN).

This marks a 0.22 percent gain from the previous day’s rate of N1,529.57, signaling a modest but encouraging step toward currency stability.

The naira’s uptick coincides with high praise from the International Monetary Fund (IMF) in its 2025 Article IV Consultation report on Nigeria.

The IMF commended the CBN for its bold reforms to the foreign exchange (FX) market, which have significantly enhanced price discovery, liquidity, and market transparency.

These measures, including targeted foreign exchange interventions, have played a pivotal role in curbing volatility and fostering greater confidence in the naira.

The IMF highlighted that the CBN’s reforms have not only stabilized the local currency but also strengthened the integrity of Nigeria’s forex market.

By improving access to foreign exchange and promoting a more transparent trading environment, the CBN has addressed longstanding challenges that previously undermined investor trust and economic predictability.

The report underscores the central bank’s commitment to aligning Nigeria’s monetary policies with global best practices, a move seen as critical to sustaining economic growth.

Analysts view the naira’s recent gains as a reflection of these reforms’ early success, though challenges such as inflationary pressures and external economic uncertainties persist.

The CBN’s proactive approach is expected to further bolster market confidence, potentially attracting foreign investment and supporting Nigeria’s broader economic recovery.

This development marks a significant moment for Nigeria’s financial landscape, as the CBN’s strategic interventions begin to yield tangible results.