By Atoyebi Nike
The Naira recorded its most stable trading period in months during September 2025, consistently staying below the ₦1,500 per dollar mark for more than two weeks.
According to data from the Central Bank of Nigeria (CBN), the currency closed at ₦1,478/$1 on September 30, strengthening from ₦1,527.9/$1 at the start of the month. The rally was marked by steady appreciation in the latter half of September, with closing rates of ₦1,495/$1 on September 15, ₦1,486.8/$1 on September 24, and ₦1,480/$1 on September 26 before firming up further at month’s end.
The September performance stands out against previous months, with the Naira closing at ₦1,602/$1 in April and ₦1,585.5/$1 in May its weakest showing this year. In contrast, September’s closing rate marked the best since January, when it briefly touched ₦1,475/$1 but failed to sustain momentum.
The stability coincided with a sharp rise in external reserves, which climbed to $42.3 billion by September 29, the highest in more than six years and an increase of $692 million in just 18 days.
CBN Governor Olayemi Cardoso attributed the improved outlook to reforms, transparency, and a more market-oriented exchange rate regime. Speaking after the Monetary Policy Committee (MPC) meeting, he stressed that exchange rate stability remains central to taming inflation and sustaining investor confidence.
“Exchange rate stability is key. If we are going to continue to moderate inflation the way we have, exchange rate stability is key. Fiscal discipline is key,” Cardoso said.
In September, the CBN cut the Monetary Policy Rate (MPR) by 50 basis points to 27 percent while narrowing the asymmetric corridor around the benchmark rate to +250/-250 basis points. The MPC retained the Cash Reserve Ratio (CRR) for commercial banks at 45 percent and for merchant banks at 16 percent.
Analysts say the Naira’s September performance signals renewed resilience in the foreign exchange market, with both reforms and reserves providing a cushion ahead of the 2026 pre-election year.
