Naira ends 2025 at N1,429/$1, first annual achieve after 13 years

The Nigerian naira ended 2025 on a firmer notice, closing at N1,429/$1 on December 31 — a 7.4% appreciation from the N1,535/$1 recorded on the ultimate buying and selling day of 2024.

That is in keeping with official trade charge information from the Central Bank of Nigeria (CBN).

The 2025 efficiency marks the naira’s first annual achieve since 2012, when it appreciated barely to N157.29 from N158.99 in 2011.

The foreign money had depreciated yearly since then, making this a serious turnaround after 13 years of constant declines.

What the information is saying

CBN information point out that whereas the naira remained unstable for a lot of the 12 months, a major restoration pattern started within the final quarter, particularly from September by means of December.

The foreign money skilled its weakest stretch in April 2025, closing at N1,602/$1, however started a gradual rebound from Might.
By the top of the 12 months, it had strengthened to N1,429/$1, enhancing from N1,450.01/$1 initially of December and even decrease than its opening charge of N1,538.50/$1 in January.
The naira traded comparatively flat in February (N1,499 to N1,500/$1), fell sharply in March and April, however began recovering from Might (N1,585/$1) and June (N1,532/$1).
September marked a turning level with the foreign money buying and selling under N1,500/$1 for many of the month, ending at N1,478/$1.

The rally continued into October (N1,427.5/$1), noticed a slight dip in November (N1,446.9/$1), however regained floor to shut the 12 months at N1,429/$1.

Nigeria’s official trade charge closing value from 2010 to 2024

What they’re saying

The primary annual achieve in about 13 years displays the influence of foreign-exchange reforms launched by the Central Bank of Nigeria in 2024.

For the reason that reforms had been carried out, the hole between the official and parallel market trade charges has narrowed to under 5%, sharply lowering speculative exercise and permitting supply-and-demand dynamics to play a extra dominant function in value discovery.

Analysts additionally attribute the naira’s turnaround to a mixture of tighter financial insurance policies, improved FX inflows, and lowered speculative demand available in the market.

Ade Omotosho, analyst at Kwik Securities, mentioned: “Reforms within the FX market, together with improved value discovery and elevated transparency, additionally helped assist the naira within the second half of the 12 months.”

The restoration nonetheless, got here after a troublesome first half of 2025, the place excessive inflation, sturdy demand for {dollars}, and delayed FX inflows weighed closely on the foreign money.

Though structural points stay, the coverage response seems to have gained traction in This autumn, contributing to the foreign money’s relative stability by year-end.