Market News

Why CBN must sustain its reforms on naira recovery - BCAN

The Nigerian naira kept getting stronger against the US dollar on Tuesday, showing more signs of improvement in the country’s foreign exchange market. According to the Central Bank of Nigeria (CBN), the naira traded at N1,463.45 per dollar on Tuesday, compared to N1,465.29 on Monday.

This means the currency gained about N1.8 in just one day at the official market.

At the black market, the naira stayed the same at N1,500 per dollar, the same rate as the previous day. Traders said demand for the dollar has been moderate, and confidence in the local currency seems to be returning.

Experts believe that the steady rise in the naira’s value is linked to the government’s ongoing efforts to stabilize the exchange rate and boost dollar supply through foreign investments and export earnings.

Meanwhile, the country’s external reserves continued to grow, reaching $42.79 billion as of October 20, 2025, up from $42.69 billion recorded three days earlier.

This improvement shows that Nigeria is gradually building a stronger financial cushion to support the naira and reduce pressure on the economy.

Analysts have welcomed the trend, saying if the CBN maintains its current policies, the naira may continue to strengthen in the coming weeks.

However, they also warn that consistent results will depend on Nigeria’s ability to increase production, attract foreign investors, and manage its oil revenues effectively.