By Atoyebi Nike
The Naira strengthened significantly in October 2025, closing the month at N1,427.5 per U.S. dollar its best performance since January. The currency had opened October at N1,464.85/$1 and gained steadily as foreign exchange liquidity improved and investor confidence ticked upward, according to new data from the Central Bank of Nigeria.
The latest movement marks a notable shift from earlier months of volatility. CBN figures show the Naira ended December 2024 at N1,535/$1 before improving to N1,475/$1 in January 2025, then slipping again through February, March, and April to its lowest point of N1,602/$1. A mild recovery began in June at N1,532/$1, with relative stability through July and August, and a firmer close of N1,478/$1 in September.
The October rate confirms that recent monetary policy interventions and increased forex inflows are beginning to deliver results.
Alongside the currency’s improvement, Nigeria’s foreign reserves climbed to $43.17 billion at the end of October, up from $42.4 billion in September a $540.28 million rise and a 1.8 percent month-on-month increase. The reserves grew consistently throughout the month due to stronger portfolio inflows, rising diaspora remittances, and renewed investor interest.
Financial analysts say the trend signals improving economic sentiment. Martin Udo, CEO of Braxton Consulting, attributed the reserve growth to stronger autonomous inflows including FPI, FDI, and remittances. He urged the government to ensure the gains translate into relief for households and businesses facing high living costs.
Paul Adams of Nasarawa State University said sustained reforms and a more predictable business climate are essential to consolidate the progress. He also called for improved security and modern digital tools to protect investments.
Abuja-based adviser Dr Bilal Adamu described the rising reserves as a “strategic signal,” but cautioned that the momentum will fade unless converted into real economic outcomes such as infrastructure development, stronger local production, and job creation.
Economists widely agree that the recent surge could help the CBN manage monetary policy more effectively and shield the economy from external shocks. But they maintain that the long-term benefits will depend on disciplined fiscal management and how well the government channels the gains into improving living standards and industrial productivity.
