Lagos, May 16, 2025 — The Nigerian naira continued to display resilience in the foreign exchange market today, maintaining its stability against major global currencies including the U.S. dollar, British pound, and the euro.
At the close of trading, the naira was exchanged at ₦1601.16/$1, nearly unchanged from the previous day’s rate of ₦1602.67/$1. This marginal improvement continues a week-long trend of relative stability in the foreign exchange market.
Against the British pound sterling, the naira settled at ₦2135.94/£1, slightly down from ₦2131.74/£1 on May 14, but notably stronger than the ₦2140.71/£1 recorded earlier in the week on May 12. Similarly, the naira posted gains against the euro, appreciating from ₦1778.40/€1 on May 13 to ₦1792/€1 as of today.
Market data from earlier this week shows that the naira has traded within a tight band, reflecting improved market liquidity and a measure of confidence among traders and investors. This relative calm is also mirrored in the official parallel market rate, which hold around ₦222.17/$ today — a small decrease from ₦222.33/$ at the beginning of the week.
Currency traders attribute the naira’s solid performance to sustained efforts by the Central Bank of Nigeria (CBN) to support the market through regulatory interventions and enhanced transparency measures. “The market has become more predictable this week. We’ve seen less speculative pressure and more stability,” said Yusuf Musa, a forex dealer at Abuja
Analysts also point to improved oil earnings and a steady inflow of foreign exchange from non-oil sectors as factors helping to support the local currency. Nigeria’s ongoing push to diversify its economy — with a focus on agriculture, tech, and services — is gradually reflecting in more balanced foreign exchange flows.
Despite these positive indicators, analysts urge caution. While the naira’s performance this week is encouraging, potential external risks remain — including fluctuations in global oil prices and interest rate decisions by major central banks, which could influence capital flows and market sentiment.
For both consumers and businesses, the current exchange rate stability provides temporary relief from rising costs, particularly in sectors reliant on imports such as food, electronics, and logistics. The reduced pressure on foreign exchange demand has helped prevent sudden price hikes in recent days.
Looking ahead, market participants will be closely monitoring upcoming macroeconomic data and any signals from monetary authorities regarding future policy directions. For now, the naira’s steady position against the dollar, pound, and euro marks a rare period of calm — offering a welcome pause in Nigeria’s often unpredictable currency trend.
