The Nigerian Naira appreciated against the U.S. Dollar in the official foreign exchange (FX) market on Friday, closing at N1,492.49 per Dollar, according to data from the Central Bank of Nigeria (CBN). This represents a 0.44% increase from the previous day’s rate of N1,499.07 per Dollar on February 27, 2025.
The Naira has demonstrated relative stability in recent weeks, largely due to CBN’s monetary reforms aimed at enhancing transparency and efficiency in the FX market. Financial analysts have commended the central bank’s efforts, citing its strategic interventions that have bolstered investor confidence. However, Prof. Jonathan Aremu, a retired CBN Director and Professor of International Economic Relations at Covenant University, cautioned against premature celebrations. While the Naira’s appreciation is a positive trend, he emphasized that a sustainable currency recovery requires increased domestic production.
“The economy needs a higher volume of goods and services. Many products are available, but their pricing is influenced by market forces,” Aremu stated. “A stronger focus on increasing production will help reduce foreign exchange demand, ultimately strengthening the Naira.”
He further noted that foreign exchange depreciation occurs partly because many consumers cannot afford to buy due to prevailing economic conditions. He urged the CBN to support businesses and industries to enhance local production rather than relying solely on liquidity management policies.
As Nigeria navigates its economic recovery, policymakers must adopt a holistic approach, balancing monetary interventions with real sector growth to ensure the Naira’s long-term appreciation.
