Data from the Central Bank of Nigeria (CBN) revealed that at the Nigerian Foreign Exchange Market (NFEM), the naira concluded the four-day trading week steady at N1,599.54 against the US dollar on Friday. This closing figure represented a marginal strengthening compared to the previous week's closing rate of N1,599.79.
Similarly, the parallel market, commonly known as the black market, also exhibited stability. The naira closed at N1,605 on Friday, maintaining this rate consistently since Wednesday.
The World Bank Group, in its latest evaluation, acknowledged the strengthening position of the naira. The international financial institution attributed this improvement to a combination of government policy initiatives, enhanced foreign exchange liquidity within the market, and a reduction in overall market volatility. "Policy efforts are aimed toward a unified and market-determined exchange rate to make the naira more competitive," the World Bank stated in its report. It further noted that "improved foreign exchange liquidity and reduced volatility have led to a more stable naira so far this year."
The World Bank's report elaborated on the broader context of African currencies, explaining that as financial conditions eased and the positive effects of foreign exchange market reforms began to materialize, several African currencies started to recover. The report highlighted the significant appreciation of the Kenyan shilling, which gained 20 percent throughout 2024 and has maintained relative stability in 2025. While acknowledging minor fluctuations in currencies like the South African rand and those pegged to it around 2023 levels, the World Bank pointed out that many African nations grappling with foreign exchange shortages due to rising external debt and subdued export revenues experienced sharp currency depreciations, particularly in 2024.
The steady performance of the naira, coupled with the World Bank's positive assessment, suggests a potentially stabilizing trend in Nigeria's foreign exchange market, driven by recent policy adjustments and improved market dynamics.