The naira recorded modest gains against major global currencies on Tuesday, May 21, 2025, signaling continued efforts by the Nigerian government and the Central Bank to stabilize the foreign exchange market. Market data show that the naira appreciated slightly against the US dollar, British pound, euro, and Chinese yuan, with traders pointing to improving investor confidence and stronger supply in the forex market.
The appreciation comes as economic policymakers intensify reforms and financial institutions show support for fiscal recovery and exchange rate stability.
Official Exchange Rates (₦ per unit):
| Currency | May 20, 2025 | May 21, 2025 | Change |
| US Dollar (USD) | ₦1610.97 | ₦1595.64 | ▼ ₦15.33 |
| British Pound (GBP) | ₦2151.32 | ₦2144.70 | ▼ ₦6.62 |
| Euro (EUR) | ₦1809.10 | ₦1802.60 | ▼ ₦6.50 |
| Chinese Yuan (CNY) | ₦223.13 | ₦221.01 | ▼ ₦2.12 |
The US dollar dropped by ₦15.33 to close at ₦1595.64, reflecting a 0.95% appreciation in the naira. Similar trends were observed with the pound sterling and euro, which fell to ₦2144.70 and ₦1802.60 respectively. The Chinese yuan also declined slightly to ₦221.01.
Market Confidence on the Rise
This performance coincides with renewed optimism about Nigeria’s macroeconomic direction. Speaking at the Qatar Economic Forum on Tuesday, Tony Elumelu, Chairman of United Bank for Africa and a member of Nigeria’s Presidential Economic Coordination Council, expressed confidence in the local currency’s trajectory.
“The naira is becoming quite stable,” Elumelu said, underscoring the perceived impact of ongoing economic reforms and coordinated monetary policy.
Analysts also attribute the naira’s marginal gains to sustained intervention by the Central Bank of Nigeria, increased foreign portfolio inflows, and a temporary dip in speculative trading.
Economic Headwinds Remain
Despite these encouraging signs, market observers remain cautious. A senior currency dealer in Lagos noted that while the naira appears more stable, long-term recovery hinges on structural adjustments, particularly in the oil and non-oil export sectors.
“Short-term improvements are welcome, but without diversifying the economy and strengthening reserves, the naira remains vulnerable to external shocks,” he said.
With the Central Bank expected to announce its next monetary policy steps in coming weeks, traders will be watching for interest rate decisions and forex management strategies. The market is also eyeing crude oil prices and global interest rate trends, which could influence capital flows and exchange rate behavior.
For now, the naira’s recent performance signals cautious optimism—but stability will depend on the consistency of reforms and the resilience of Nigeria’s broader economy.
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