Market News

BY Wasiu Alli 

Inflows from seasonal activities, particularly the “Detty December” festivities, are expected to give the naira a boost after it depreciated mildly last month, according to a new report.

“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.

“Consequently, the naira may experience mild appreciation pressure, driven by seasonal inflows associated with holiday activities.”

The naira, which began December at 1,448.43 per $1, depreciated by 0.07 percent last month and has since gained 0.06 percent over the past three days to close trading on Wednesday at 1,447.64 per $1.

Gross external reserves are also up, rising from $42.76 billion in October to $43.82 billion last month, reflecting improving FX inflows despite the relatively weak oil market.

“Detty December” is a period marking the end of the year, and it comes with inflows from the diaspora who are in Africa’s most populous nation to celebrate Christmas and the New Year.

The naira is experiencing its rarest stability in recent times, following a steep devaluation that saw the currency tumble by about 70 percent two years ago.

The currency has equally recorded a significant gain of N215.73 against the dollar in the official foreign exchange market, marking a full year since the commencement of the Electronic Foreign Exchange Management System (EFEMS).

Data published by the Central Bank of Nigeria (CBN) showed that the naira appreciated by 14.93 percent to N1,445.39 on Tuesday, December 2, 2025, compared to N1,661.12 quoted on December 2, 2024, which was the first trading day under the EFEMS framework. This improvement underscores the currency’s gradual strengthening since the revised trading architecture came into effect.

To ensure lasting stability of the local currency, the World Bank, in its latest biannual report, urged the government to focus on longer-term foreign exchange inflows from oil, remittances, and especially non-oil exports. It also called for a more transparent FX policy framework and progressive adjustments to regulations governing banks’ foreign currency positions.