Abuja, Nigeria – Naira don show small light for foreign exchange (FX) market like say e wan smile again. For di first half of 2025, naira gain N90 for black market, which be 5.7%, an dat one no stop there oo. For official market, e still manage flex muscle with 0.8% gain.
According to Central Bank of Nigeria (CBN) data, naira come appreciate by N11.65, close am at N1,529.71 on June 30, 2025. Dem report say naira start June at N1,541.36, but by di end, my people don chuk in N1,570 like say na so e dey go. (Naira just dey jubilate, no be small).
Wetin make dis naira gain dey happen na because of wetin dem call foreign portfolio investors dey flow plenty dollar into di market. Analysts wey dey observe di scene from FSDH Research talk say di gradual rise show say people dey trust di FX market more now. (E fit mean say dem no dey carry face again!).
Dem also state say some risks dey wey fit affect how economy dey move, including money wey fit comot and low oil price wey fit carry di federal government wahala. For dis reason, dem expect say naira go settle around N1,595 by di end of 2025. This na confirm say capital flows important well well for naija economy.
In dis quarter wey don pass for 2025, naija attract $5.03 billion from FPIs. Na di investor-friendly reforms and plenty diversification wey dey happen make dis one fit happen. Di CBN’s statistics show say foreign exchange inflows increase by 17% from last quarter, for Q4 2024 reach $27.7 billion last year. (Naija dey groove!)
Despite make all dis gains, no forget say FX outflows still climb. Dem say e rise by 43% quarter-on-quarter to $12.1 billion, but na still net FX inflow of N15.7 billion wey be di highest since Q3 2021. Na wetin I call no be small movement!
Looking towards di future, FBNQuest talk say as FX inflows dey rise, dem expect say e go balance di exchange rate wey dey show better performance. But e get external risk wey dey wey fit affect dis positive vibe, like wetin dey happen for America.
Meanwhile, na dis FX policy reform dey clear backlog and dey try return confidence back make di economy stabilize. Dem don move di reserves from low $32.1 billion in April 2024 to $40.9 billion for January 2025, but as we dey enter di first half of 2025, e don drop 8.5% to $37.3 billion. Na import bills, service payments, and debt who dey take their share of di reserve cake. (No cake for dem again!)
But e no end there, for di first trading day of July, naira still dey show some ginger as e appreciate another N0.14 to close for N1,529.57 naira per dollar. E dey clear say di current movement dey supported by foreign demand and plenty dollar wey dey flow for di market. Analysts dey expect say as long as di Foreign Portfolio Investors dey strong, naira go continue to shine.
