Nigeria recorded a slight but notable improvement in its foreign exchange market on Tuesday as the Naira appreciated for the first time in weeks at the official window. The development comes at a time when the country’s foreign reserves are also rising, reaching levels last seen seven years ago.
According to fresh data published by the Central Bank of Nigeria (CBN), the Naira strengthened to N1,447.43 per dollar at the official market on Tuesday. This marks a small improvement from N1,448.03 per dollar recorded on Monday, giving the local currency a gain of 60 kobo in a single trading day. Although the appreciation is modest, economic analysts say it may be a sign of a stabilising market following months of volatility.
While the official market saw a slight improvement, the parallel market remained unchanged. The Naira traded at N1,465 per dollar on Tuesday, the same rate buyers and sellers exchanged on Monday. The gap between the official and black market rates has been one of the major concerns for policymakers, investors, and businesses, as it creates uncertainty and encourages speculation.
The CBN has been working to narrow this gap by increasing foreign exchange supply, tightening regulations around Bureau De Change operators, and encouraging transparency in forex transactions. The bank has also intensified monitoring of forex inflows and outflows to reduce illegal trading and round-tripping.
In addition to the Naira’s appreciation, Nigeria’s foreign reserves have shown significant improvement. The CBN’s latest figures show that the reserves stood at $43.97 billion as of November 17, 2025. However, speaking at an event on Tuesday, CBN Governor Olayemi Cardoso revealed that the reserves had actually reached $46.7 billion as of November 14, making it the highest level recorded in seven years.
Foreign reserves represent the total amount of foreign currency, gold, and other international assets held by the CBN. These reserves are important for stabilising the Naira, paying for imports, and meeting Nigeria’s international financial obligations. The growth in reserves is often seen as a positive sign that a country has enough liquidity to defend its currency when needed.
Cardoso did not give full details of the sources of the recent increase, but analysts believe it may be linked to higher oil revenue, improved remittances from Nigerians abroad, and inflows from foreign investors who are gradually returning to Nigerian markets following recent reforms.
Since the start of 2024, the Nigerian government and the CBN have introduced several measures aimed at improving the foreign exchange system. Some of these include allowing market forces to determine exchange rates, simplifying forex rules, and clearing outstanding forex backlogs owed to businesses and airlines.
The CBN has also been pushing for a single exchange rate window to reduce arbitrage opportunities. Although the Naira has faced pressure in recent months, Cardoso has repeatedly said the reforms will lead to long-term stability, even if short-term challenges persist.
The slight appreciation recorded on Tuesday, together with rising reserves, may indicate that some of these policies are beginning to yield positive results.
Despite the positive news, many Nigerians continue to feel the pressure of a weak currency. Prices of imported goods remain high, businesses struggle with unpredictable forex supply, and inflation continues to erode purchasing power. The Naira, which traded at less than N500 per dollar in 2022, has experienced one of its most challenging periods in history following the floating of the currency in mid-2023.
The manufacturing sector has been particularly affected, with many companies reducing production because they cannot access forex at reasonable rates. Importers of fuel, medicine, spare parts, and raw materials also say that frequent fluctuations in the exchange rate make it difficult to plan ahead.
CBN Governor Olayemi Cardoso has repeatedly assured Nigerians that the bank is committed to restoring confidence in the forex market. At Tuesday’s event, he reiterated that the bank would continue implementing policies aimed at strengthening the currency, increasing liquidity, and supporting economic growth.
He also expressed optimism that Nigeria’s foreign reserves would continue to improve, helped by better oil production, ongoing reforms in the petroleum sector, and increased non-oil exports.
For many Nigerians, the slight appreciation of the Naira may not immediately translate into lower prices or cheaper goods. But for policymakers, foreign investors, and market watchers, the development is a positive signal that the forex market may be gradually moving toward stability.
