The Director-General of the Budget Office, Tanimu Yakubu, has disclosed that the naira appreciated by 15.28% against the U.S. dollar over the past five months, driven by reforms, higher oil earnings, and increased diaspora inflows.

Speaking in Abuja on Saturday, Yakubu explained that the Nigerian currency recovered to ₦1,525 per dollar by August 2025, after hitting record lows of ₦1,800 in March 2024.

He described the rebound as a “policy-driven correction” that has restored investor confidence and created a more transparent foreign exchange (FX) market.

“This wasn’t luck; it was policy. Increased oil receipts, swelling diaspora remittances, and the clearing of over $4 billion in FX backlogs restored investor trust,” Yakubu said.

“The unification of Nigeria’s FX windows created a single, transparent market rate—finally letting the currency find its realistic value.”

Reforms Paying Off

Yakubu credited President Bola Tinubu’s decision to end Nigeria’s fixed exchange regime in 2024, which initially triggered a sharp sell-off, for laying the groundwork for the current recovery.

He acknowledged that the policy shift was widely criticized at the time but insisted it was a “deliberate, high-risk recalibration” that is now yielding results.

“Critics were quick to call it a collapse. But beneath the noise, a long-term strategy was underway—one that is now paying off. A floating currency, when backed by sound policy, is not a weakness but a tool for national competitiveness,” Yakubu added.

He further argued that if Nigeria stays the course, the naira’s rebound could mark the start of a sustainable, export-led economic transformation.

Market Performance

Meanwhile, the Central Bank of Nigeria (CBN) reported updated exchange rates for Friday, August 29, showing the naira recorded its strongest performance in months.

  • At the Nigerian Foreign Exchange Market (NFEM), the currency gained ₦4.16 or 0.27% against the U.S. dollar to close at ₦1,531.45/$1, compared to ₦1,535.61/$1 the previous day.

  • Against the Pound Sterling, the naira appreciated by ₦12.17 to settle at ₦2,064.25/£1.

  • Against the Euro, it rose by ₦5.33 to quote at ₦1,789.18/€1.

Other updated CBN rates included:

  • Yuan/Renminbi – ₦214.78

  • CFA – ₦2.73

  • Danish Krona – ₦239.70

  • Yen – ₦10.42

  • Riyal – ₦408.17

  • South African Rand – ₦86.58

  • Swiss Franc – ₦1,913.03

FX Reserves Strengthen

The CBN also confirmed that Nigeria’s external reserves climbed to $41.22 billion, crossing the $41 billion threshold for the first time in over four years.

Analysts say the stronger reserves enhance the CBN’s ability to defend the naira and sustain confidence in Nigeria’s economic outlook.