Naira Closes 2025 on Strong Note, Appreciates to N1,435.75 Against Dollar

By Emmanuel Kwada

The Nigerian naira ended 2025 on a positive trajectory, strengthening against the US dollar in the official foreign exchange market. According to data from the Central Bank of Nigeria (CBN), the naira closed at N1,435.75 per dollar on December 31, marking a significant gain of N9.92 from Tuesday’s closing rate.

This represents a 0.7 percent day-on-day appreciation, extending the currency’s year-end firmness amid ongoing efforts to stabilize the forex market. The appreciation comes as a welcome relief for Africa’s largest economy, which has grappled with currency volatility throughout much of the year.

Analysts attribute the naira’s late-2025 resilience to sustained CBN interventions, improved foreign exchange inflows from oil exports, and rising external reserves, which stood at approximately $45.488 billion by year-end. These factors helped bolster liquidity in the Nigerian Foreign Exchange Market (NAFEM), allowing for better price discovery and reduced pressure on the local currency.

Market watchers note that the closing rate signals cautious optimism heading into 2026, with expectations of continued stability if oil production remains robust and global commodity prices supportive. However, challenges such as import demand and seasonal dollar outflows could test the naira’s gains in the new year.

As Nigerians usher in 2026, the stronger naira close provides a hopeful economic footnote to 2025, potentially easing inflationary pressures on imported goods and boosting investor confidence.