CBN’s FX Reforms Pay Off as Naira Appreciates Sharply in October

The Naira recorded a notable appreciation against the United States Dollar in October, reflecting the positive impact of the Central Bank of Nigeria’s (CBN) ongoing foreign exchange reforms.

According to official data released by the CBN, the Naira closed at ₦1,421.73 per dollar on October 31, 2025, strengthening from ₦1,455.23 recorded at the beginning of the month. This translates to a ₦33.50 gain, or approximately 2.3 percent appreciation on a month-on-month basis — one of the strongest performances since the introduction of the Electronic Foreign Exchange Matching System (EFEMS) last year.

The EFEMS platform, designed to enhance transparency and efficiency in Nigeria’s foreign exchange market, appears to be delivering results, with improved liquidity and more stable pricing seen in recent weeks.

At the parallel market, however, the Naira remained relatively unchanged, maintaining an average rate of ₦1,485 per dollar during the same period. Analysts suggest that while the official market reflects increasing confidence, the stability at the black market indicates a gradual narrowing of the gap between the two exchange rates.

The local currency’s stronger showing has coincided with an uptick in Nigeria’s external reserves, which rose by 1.79 percent in October. Data from the CBN showed that the reserves climbed to $43.17 billion as of October 30, up from $42.41 billion at the start of the month.

Market observers attribute the rise in reserves to improved oil receipts, tighter monetary policies, and increased foreign inflows driven by the CBN’s ongoing reforms. The bank’s efforts to stabilize the foreign exchange market through consistent policy adjustments and transparent operations have been widely commended by stakeholders.

Economists note that sustaining this momentum will depend on continued policy consistency, stable crude oil prices, and enhanced investor confidence. With Nigeria’s reserves on the rise and the Naira gaining ground, the outlook for the coming months appears cautiously optimistic for Africa’s largest economy.