The naira strengthened significantly on the official foreign exchange market, closing at ₦1,455.23 per dollar, marking a 1.36% appreciation from the ₦1,475.34 recorded on September 30.

This is the first time since May 2024 that the exchange rate has dipped into the ₦1,400 range, making it the currency’s strongest performance so far this year.

The Central Bank of Nigeria’s (CBN) introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2024 has been credited as a major factor in the steady recovery. At the time EFEMS was launched, the naira was trading at ₦1,660 per dollar, showing a notable improvement over the past 10 months.

In the parallel market, the naira also gained ground, closing at ₦1,480 per dollar compared to ₦1,485 at the end of September. This marks the best parallel market rate recorded in 2025.

President Bola Tinubu, in his Independence Day address on October 1, hailed the development as evidence of stabilisation.

“The naira has stabilised from the turbulence and volatility witnessed in 2023 and 2024. The gap between the official rate and the unofficial market has reduced substantially, following FX reforms and fresh capital and remittance inflows,” he said.

Further optimism came from Abdul Samad Rabiu, chairman of BUA Group, who recently projected that the naira could strengthen further to between ₦1,300 and ₦1,400 per dollar before the year ends.