By Atoyebi Nike
The naira surged to N1,579 per US dollar over the weekend, marking its strongest performance in a month amid continued reforms by the Central Bank of Nigeria (CBN).
This rise came as global markets reacted to renewed US-EU trade tensions, leading to a sell-off of the US dollar and a sharp gain for the British pound.
Data from the Nigerian Foreign Exchange Market (NFEM) shows the naira appreciated from N1,583.92 on Thursday to N1,579 on Friday, May 23, 2025. It had earlier hit a low of N1,612 on May 7 but has since maintained a strong rally.
CBN Governor Olayemi Cardoso credited the naira’s resilience to policy reforms aimed at boosting liquidity and investor confidence. “The stability of the naira reflects the strength of our recent forex market interventions,” he said during the bank’s Monetary Policy Committee (MPC) meeting.
Cardoso noted that narrowing the gap between official and parallel markets was key to restoring credibility in Nigeria’s currency system.
Experts agree. “Despite falling oil prices and lower reserves, the naira’s rebound shows the CBN has taken the right steps,” said Jane Ogochukwu, a senior banker and economist.
Meanwhile, currency dealers reported trades between N1,575.10 and N1,585 to the dollar on Friday. The central bank also released new benchmark exchange rates for commercial banks.
In global markets, the pound sterling hit £1.3538 on Friday, gaining 1.93% against the US dollar. Analysts say the surge followed fears of a renewed trade war, as the US threatened new tariffs on the European Union.
Investors are reportedly shifting funds from the dollar to the pound in response to the geopolitical tension.
CBN officials say Nigeria’s FX reforms are working despite external economic headwinds, with the naira now “globally competitive.”
