The Nigerian economy continues to show resilience as the naira on Thursday appreciated to ₦1,421 per dollar on the official foreign exchange market, reflecting improved liquidity and growing investor confidence.
At the same time, the stock market maintained its upward momentum, with investors gaining ₦35.07 trillion in value over the past 10 months underscoring renewed optimism across key sectors.
The naira extended its rally by appreciating by 1.1 per cent against the dollar to close at ₦1,421.73 on the official market — its strongest level since the launch of the Central Bank’s Electronic Foreign Exchange Matching System (EFEMS).
The sustained rally, driven by policy reforms and increased foreign inflows, signalled rising confidence in the management of the foreign exchange market.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the naira gained ₦15.24 from Thursday’s rate of ₦1,436.97/$.
On the parallel market, the naira also firmed by 0.7 per cent, closing at ₦1,450 per dollar in Lagos, compared to ₦1,460 the previous day. The spread between both markets narrowed to ₦28.27, indicating a gradual convergence between the official and informal market rates.
Analysts attributed the appreciation to the CBN’s sustained reforms, stronger oil receipts, and improved foreign portfolio investment inflows.
Africa’s richest man and President of the Dangote Group, Aliko Dangote, recently expressed optimism that the domestic currency’s rally would continue in the coming months.
Speaking at a world press conference in Lagos, Dangote said:
“I can assure you that within the next one or two months, with the new policy of the government supporting the downstream, you will see the dollar rate actually improve a lot.
If I have dollars today, I would rather sell them than wait for the next month or so.”
Commenting on the naira’s upward momentum, the Head of Financial Institutions Ratings at Agusto & Co., Mr. Ayokunle Olubunmi, said:
“The strengthening naira is caused by a combination of factors. The acceptability of the various reforms of the CBN and the success in attracting FPIs have significantly supported the currency.
The naira also benefited from the weak USD on the back of the various policies of the Trump administration. The removal of Nigeria from the Grey List would further support the currency. However, navigating the bond obligations maturing before year-end will be imperative in keeping the exchange rate stable.”
Meanwhile, investors’ average return on the stock market segment of the Nigerian Exchange Limited (NGX) rose to ₦35.1 trillion in the first 10 months of 2025, buoyed by favourable foreign exchange conditions and other federal government reforms.
Data compiled by THISDAY revealed that the stock market opened trading in 2025 at ₦62.763 trillion, gaining 55.87 per cent or ₦35.07 trillion to close October 31, 2025, at ₦97.829 trillion.
Similarly, the NGX All-Share Index (ASI) closed yesterday at 154,126.46 basis points, an increase of 51,200.06 basis points or 49.7 per cent from the 102,926.40 basis points recorded at the end of 2024.
Market capitalisation in October 2025 gained ₦7.25 trillion — or eight per cent — from ₦90.580 trillion in September 2025 to ₦97.829 trillion, while the NGX ASI advanced by 11,415.98 basis points, also nearly eight per cent, from 142,710.48 basis points in September 2025.
In October 2025, the stock market also crossed the 150,000 basis point mark — a historic record for the Nigerian bourse.
Speaking on the development, Group Managing Director/Chief Executive Officer of NGX Group, Mr. Temi Popoola, described the milestone as a reflection of growing investor confidence and the Exchange’s strategic focus on deepening participation.
“Crossing the 151,000-point threshold is a testament to the strength and adaptability of our market. It demonstrates how local and international investors continue to see value in Nigerian equities despite global headwinds,” Popoola said.
“At NGX Group, we are committed to driving innovation, transparency, and market expansion to sustain this growth trajectory. This milestone reinforces our belief that the Nigerian capital market remains a critical enabler of economic transformation.”
Analysts attributed the stock market’s 55.87 per cent growth to stability in the foreign exchange market, recovery of companies from forex losses, market liquidity, capital inflow, dominance of domestic investors, increasing portfolio investment, and the Central Bank of Nigeria’s banking sector recapitalisation and insurance reforms all of which played a critical role in the market’s performance during the period under review.
In addition, the yield on Nigerian Treasury Bills dropped to 15 per cent in October 2025, from 18 per cent previously reflecting improved monetary stability and liquidity conditions.
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