The naira’s 2025 story showed pressure, patience and, finally, a late turnaround.
After months of volatility, the currency closed on December 31 at ₦1,429/$1.
According to data from the Central Bank of Nigeria (CBN), the year ended on a stronger note.
At the start, the year opened weakly.
Early Pressure Tests The Naira
In January, the naira traded at ₦1,538.50/$1, close to its 2024 closing level.
Meanwhile, high inflation, strong dollar demand and tight financing strained the market.
As a result, conditions worsened through the first half, weakening confidence in the currency.
In February, the naira barely moved and closed almost flat at ₦1,500/$1.
However, losses deepened in March, before April brought the year’s sharpest fall.
By the end of April, the naira fell to ₦1,602/$1, its weakest level in 2025.
At that point, delayed FX inflows and rising import demand drove pressure.
Mid-Year Recovery Takes Shape
Then, stability returned in May.
The naira recorded a mild correction and closed at ₦1,585/$1.
In June, the currency rebounded more clearly and strengthened to ₦1,532/$1.
Although July introduced slight weakness, the broader trend improved.
From August, the recovery became clearer.
By the end of September, the naira strengthened to ₦1,478/$1.
During most of that month, it traded below the ₦1,500/$1 level.
Read Also: Nigeria Posts $320M Net Lending Surplus In Q3 2025 – CBN
Consequently, this improvement laid the foundation for a stronger final quarter.
Policy Support Lifts Year-End
In October, the naira delivered a standout performance.
It rose to ₦1,427.5/$1, one of its strongest levels of the year.
In November, the currency softened slightly and closed at ₦1,446.9/$1.
However, momentum returned in December.
The naira improved from ₦1,450.01/$1 and closed the year at ₦1,429/$1.
Analysts link the recovery to tighter monetary policy and stronger FX inflows.
Ade Omotosho of Kwik Securities said better transparency and price discovery supported the naira.
Meanwhile, CBN data shows stability improved notably between September and December.
However, analysts warn that structural weaknesses still affect the FX market.
Therefore, the recovery does not erase long-standing challenges.
To strengthen confidence, the CBN says it is finalising a revised FX manual.
Earlier in 2025, the bank also introduced the Nigerian Foreign Exchange Code.
Looking ahead, the CBN projects external reserves of $51.04 billion in 2026.
This outlook rests on stronger oil earnings and continued FX reforms.
Ultimately, ending 2025 stronger offers cautious optimism for 2026.
Still, sustained gains will depend on inflation control, capital inflows and policy consistency.
