… gains 12.5% in 10 months
Hope Moses-Ashike
The naira on Monday reached an all-time high of N1,476.34 per dollar since the commencement of the Electronic Foreign Exchange Matching System (EFEMS) via the Bloomberg BMatch platform in December 2024.
Between December 2024, when the EFEMS was introduced, and yesterday, the naira appreciated by N184.78, representing a 12.5 percent gain compared to N1,661.12 per dollar at the time of its rollout.
On a daily basis, the local currency strengthened by 0.3 percent on Monday, with the dollar quoted at N1,476.34, compared with N1,480.65 quoted on Friday at the Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN).
Traders attributed the appreciation of the naira to increased liquidity in the foreign exchange (FX) market, rising external reserves, and reduced speculative activities, largely driven by the reform measures of the CBN.
At the parallel market, also known as the black market, the naira weakened slightly by N5 to close at N1,495 on Monday, compared with N1,490 on Friday.
In the banking sector, GTBank’s daily FX rate for international transactions traded at N1,485, the same level recorded on Friday, while Access Bank’s rate for international transactions stood at N1,508 on Monday, down from N1,512 quoted on Friday.
Total FX inflows rose significantly to US$984.10 million, compared with US$605.00 million in the previous week, according to a new report by Coronation Merchant Bank’s research department. In terms of inflow composition, Foreign Portfolio Investments (FPIs) accounted for the largest share at US$318.10 million (32.32 percent), followed by exporters at 25.06 percent, non-bank corporates at 18.32 percent, the CBN at 14.89 percent, Foreign Direct Investments (FDIs) at 5.67 percent, and other sources at 3.74 percent.
Meanwhile, Nigeria’s gross external reserves increased by US$192.95 million (0.46 percent) to settle at US$42.23 billion as of Thursday, September 28, 2025, according to CBN data.
“We anticipate a mild appreciation of the naira in the near term, supported by sustained foreign portfolio flows and CBN interventions,” analysts at Coronation Merchant Bank said.
The report further noted that last week the naira extended its positive momentum, appreciating modestly against the U.S. dollar by 0.49 percent week-on-week, equivalent to a gain of N7.24. The performance was driven mainly by foreign portfolio inflows and improved supply from exporters. In the parallel market, the currency also mirrored this trend, appreciating by 1.67 percent week-on-week, or N25.00, resulting in a significant narrowing of the premium between the two markets to N19.34 per dollar from N37.10 per dollar in the previous week.
The Central Bank of Nigeria had, in November 2024, issued a directive mandating all banks in the interbank foreign exchange market to transition to the Bloomberg BMatch system for FX trading. EFEMS, the electronic platform, was designed to tackle speculation and enhance transparency in Nigeria’s FX market. By automatically matching buy and sell orders, it promotes fairness and efficiency in FX trading. Financial experts remain optimistic about the potential of EFEMS to address persistent challenges confronting the naira and the country’s external reserves.
