The Nigerian naira ended 2025 on a firmer note, closing at ₦1,429/$1 on December 31 — a 7.4% appreciation from the ₦1,535/$1 recorded on the final trading day of 2024.
This is according to official exchange rate data from the Central Bank of Nigeria (CBN).
The 2025 performance marks the naira’s first annual gain since 2012, when it appreciated slightly to ₦157.29/$1 from ₦158.99/$1 in 2011. The currency had depreciated every year since then, making this a notable turnaround after 13 consecutive years of decline.
Putting the numbers in context 
Despite the year-end gain, the naira’s current level remains significantly weaker compared to its position before the current administration took office in May 2023. At that time, the official exchange rate hovered around ₦460–₦465/$1, while the parallel market traded near ₦740–₦770/$1.
This contrast highlights that while 2025 closed with an annual appreciation, the naira is still recovering from the sharp adjustments and devaluations that followed the foreign exchange reforms introduced in mid-2023.
What the data is saying
CBN data indicate that while the naira remained volatile for much of the year, a recovery trend became clearer in the last quarter, particularly between September and December.
The currency experienced its weakest stretch in April 2025, closing at ₦1,602/$1, before beginning a gradual rebound from May. By the end of the year, it had strengthened to ₦1,429/$1, improving from ₦1,450.01/$1 at the start of December and ending well below its January opening rate of ₦1,538.50/$1.
The naira traded relatively flat in February (₦1,499–₦1,500/$1), fell sharply in March and April, but started recovering from May (₦1,585/$1) and June (₦1,532/$1).
September marked a turning point, with the currency trading below ₦1,500/$1 for most of the month and closing at ₦1,478/$1.
The rally continued into October (₦1,427.5/$1), dipped slightly in November (₦1,446.9/$1), and regained ground to close the year at ₦1,429/$1.
What they are saying
Analysts say the first annual gain in over a decade reflects the impact of foreign-exchange reforms introduced by the CBN in 2024.
Since these reforms, the gap between the official and parallel market exchange rates has narrowed to below 5%, reducing speculative pressure and allowing market forces to play a greater role in price discovery.
The naira’s improvement has also been linked to tighter monetary policy, improved FX inflows, and reduced speculative demand.
Ade Omotosho, analyst at Kwik Securities, said:
“Reforms in the FX market, including improved price discovery and increased transparency, helped support the naira in the second half of the year.”
However, the recovery followed a challenging first half of 2025, marked by high inflation, strong demand for dollars, and delayed FX inflows.
What this means
While the naira’s 2025 performance offers cautious optimism, it also underscores the scale of adjustment the economy has undergone in recent years. The annual gain signals stabilisation rather than a return to past strength, especially when viewed against pre-2023 exchange-rate levels.
Analysts believe a stronger year-end close could help restore investor confidence in 2026, provided reforms are sustained and inflation is brought under control.
Long-term resilience, however, will depend on Nigeria’s ability to attract capital, boost exports, strengthen external reserves, and maintain policy consistency. Without sustained follow-through, the naira could still face renewed volatility.
What you should know
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The CBN is finalising a revised foreign exchange (FX) manual to deepen participation and improve transparency in the FX market.
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In January 2025, the CBN introduced the Nigerian Foreign Exchange (FX) Code to promote ethical conduct among market participants.
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The CBN’s 2026 Macroeconomic Outlook projects external reserves of $51.04 billion, driven by improved oil revenues, FX reforms, and stronger inflows.
Thanks to https://nairametrics.com/2026/01/01/naira-ends-2025-at-n1429-first-annual-gain-in-13-years/
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