Naira Ends 2025 Strong at ₦1,429/$1, Steady at Parallel Market on Jan 1

The naira closed 2025 on a positive note, settling at ₦1,429/$1 on December 31 at the Nigerian Foreign Exchange Market (NAFEM).

In contrast, the local currency sustained its strength for the fourth consecutive trading session at the parallel market, holding firm against the U.S. dollar on Thursday, January 1.

Currency dealers in Abuja told Economic Confidential that the naira traded at ₦1,480/$1 for buying and ₦1,490/$1 for selling, unchanged from Wednesday’s closing rates.

At the official window, the naira recorded a historic appreciation, closing at ₦1,429/$1. This represents a 7.4 per cent gain from the ₦1,535/$1 recorded at the end of 2024 and an improvement from the ₦1,435/$1 level seen earlier in 2025.

The performance marks the naira’s first annual gain since 2012, when it appreciated marginally to ₦157.29/$1 from ₦158.99/$1 in 2011. The currency had depreciated every year thereafter, making the 2025 outcome a major turnaround after 13 consecutive years of decline.

Analysts, however, project further strengthening of the naira in 2026. They expect the currency to trade within a narrower and firmer range, supported by improving foreign exchange fundamentals, higher FX inflows, reduced speculative pressures, and enhanced price discovery in the forex market.

They added that clearer pricing mechanisms and improved transparency have helped restore confidence among foreign investors and exporters, boosting foreign exchange liquidity and supporting naira stability.