The Naira ended October 2025 on a strong note, closing at N1,427.5 per U.S. dollar.
Data from the Central Bank of Nigeria (CBN) shows that the local currency began the month at N1,464.85/$1, gaining steadily over the course of the month as foreign exchange liquidity improved and market confidence strengthened.
Checks by Nairametrics reveal that this remains the currency’s best closing since January, when it closed at N1475/$1.
October’s performance stands out in Naira’s recent trajectory, highlighting a gradual recovery following several months of instability.
CBN records show that the currency closed December 2024 at N1,535/$1, before appreciating slightly to N1,475/$1 in January 2025. It then weakened to N1,500/$1 in February, N1,537/$1 in March, and further to N1,602/$1 in April, its lowest point in over a year.
The Naira began to recover modestly from June 2025, closing at N1,532/$1, and maintaining relative stability in July (N1,534/$1) and August (N1,531/$1). By September, the currency had firmed up to N1,478/$1, a significant improvement from N1,527.9/$1 at the start of that month.
The October closing rate of N1,427.5/$1 marks the strongest performance since early 2024, confirming that policy interventions by the CBN and increased foreign exchange inflows are beginning to yield positive results.
Complementing the Naira’s appreciation, Nigeria’s foreign reserves rose to $43.17 billion by the end of October 2025, up from $42.4 billion at the end of September. This represents a $540.28 million increase in just two weeks, a 1.8% growth month-on-month.
CBN data reveals that the reserves grew consistently throughout the review period, peaking at $43.17 billion on October 30 compared to $42.63 billion at the start of the month. This sustained increase reflects improving foreign portfolio investment (FPI) inflows, diaspora remittances, and renewed investor confidence in Nigeria’s economic stability.
According to Martin Udo, CEO of Braxton Consulting, a Lagos-based financial services firm, the rise in reserves is largely driven by autonomous inflows such as foreign portfolio investment (FPI), foreign direct investment (FDI), and diaspora remittances.
“This is an indication that investors’ and citizens’ confidence is improving, which is good for the general economy,” Udo said. “The government should focus on addressing the cost-of-living challenge so that the increase in external reserves can translate into tangible benefits for households and businesses.”
Udo further urged the government to sustain fiscal discipline and ensure efficient public spending, warning that poor management or leakages could undermine the benefits of the current momentum. He also advised policymakers to use the reserves growth as a springboard for reducing public debt exposure and expanding productive investments.
Similarly, Paul Adams, an economist at Nasarawa State University, Keffi, emphasised the importance of improving Nigeria’s investment climate to consolidate the gains.
“When investors see consistency and a supportive business environment, they are encouraged to inject capital, which in turn drives growth and development,” Adams explained.
He called for the strengthening of security measures and investment in digital monitoring platforms to safeguard assets and ensure a stable environment for business expansion across sectors.
Adding his voice, Dr. Bilal Adamu, an Abuja-based investment adviser, described the surge in reserves as “a positive and strategic signal” for the Nigerian economy. However, he cautioned that the gains would be short-lived unless the government translates them into real economic outcomes.
“The reserves should not just sit as a statistical achievement. They should support infrastructure projects, improve local production capacity, and create sustainable jobs that enhance economic resilience,” Adamu noted.
Economists agree that the latest surge could help cushion the economy against external shocks, strengthen the naira, and provide the CBN with greater leverage to manage monetary policy more effectively. However, they stressed that the long-term impact will depend on how well the government channels these gains into improving living standards and industrial productivity.
Source: Nairametrics
