Nigeria’s currency, the naira, recorded a notable recovery in 2025, appreciating by nearly ₦100 against the United States dollar, according to official data.
The naira closed trading on December 31, 2025, at ₦1,435.76 per dollar, improving from ₦1,535 recorded at the end of 2024.
Foreign Reserves Rise by $4.6bn
Alongside the currency appreciation, Nigeria’s external reserves strengthened significantly during the year.
Data showed that foreign reserves rose to $45.5 billion as of December 30, 2025, up from $40.9 billion a year earlier, representing an increase of $4.6 billion.
Currency, Reserves Signal Gradual Economic Recovery
The naira’s performance translates to an annual appreciation of 6.68 per cent, while foreign reserves expanded by 11.05 per cent year-on-year.
This marks a gradual recovery for the local currency following a sharp 40.9 per cent depreciation recorded in 2024.
CBN Attributes Gains to Reforms, Oil Price Stability
The Central Bank of Nigeria (CBN) attributed the improved performance of the naira and the build-up in reserves to policy and institutional reforms, supported by relatively stable crude oil prices.
In its 2026 Economic Outlook, the apex bank noted that improved fiscal conditions helped support growth during the year.
“The fiscal space improved in 2025, owing to policy and institutional reforms, as well as stable crude oil prices fostering growth,” the CBN stated.
Outlook Remains Cautiously Optimistic
Analysts say the combination of currency stability and rising reserves could help strengthen investor confidence in 2026, although they caution that sustained reforms and external inflows will be critical to maintaining the momentum.
The naira’s improved showing in 2025 is seen as an early sign of stabilisation after a turbulent period for Nigeria’s foreign exchange market.
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