Nigeria’s naira is showing signs of recovery, appreciating in the official foreign exchange market to around ₦1,525 per U.S. dollar this week, from ₦1,535 recorded just days earlier. This modest but notable gain reflects renewed investor confidence and ongoing interventions by the Central Bank of Nigeria (CBN) to stabilize the currency.

The recent appreciation follows stronger foreign demand for Nigeria’s short-term government debt instruments, which have offered attractive yields amid global market uncertainties. Analysts believe the uptick in naira value indicates a positive market response to the CBN’s ongoing reforms and monetary tightening measures.

Currency traders in Lagos report improved dollar supply in the official window, reducing pressure on the naira and narrowing the gap with parallel market rates. However, exchange rates on the street remain volatile, with rates hovering above ₦1,550/USD as speculative activities persist.

Since the naira’s sharp depreciation earlier this year following the government’s decision to float the currency, the CBN has rolled out several measures to support the local unit. These include lifting restrictions on foreign exchange for certain imports, clearing forex backlogs owed to airlines and foreign businesses, and resuming sales of dollars to banks to meet legitimate demands.

Experts caution that while the recent gains are encouraging, sustained naira stability will depend on increased oil earnings, improved foreign investments, and further progress on economic reforms. The government’s success in tackling inflation—currently above 28%—will also play a critical role in maintaining positive sentiment around the currency.

The naira’s performance is crucial for Africa’s largest economy, as it impacts import costs, investor returns, and the overall cost of living for millions of Nigerians.

Financial analysts say ongoing fiscal and monetary coordination will be essential to consolidating the naira’s recent recovery, restoring confidence in Nigeria’s economy, and supporting long-term growth.