(DDM) – The Nigerian Foreign Exchange Market (NFEM) on Monday, October 28, 2025, recorded another appreciation of the naira against the US dollar, reflecting a steady recovery trend in Nigeria’s official exchange system.
Diaspora Digital Media (DDM) gathered that according to data from the FMDQ Securities Exchange, the naira closed at ₦1,438.27 per dollar, marking one of its strongest performances since the introduction of the Central Bank of Nigeria’s (CBN) Electronic Foreign Exchange Matching System (EFEMS) late last year.
The gain represents a day-to-day improvement of 0.7% compared to Friday’s ₦1,448.33 per dollar, signalling renewed investor confidence in Nigeria’s foreign exchange reforms.
Market analysts attributed the rally to increased dollar inflows from foreign portfolio investors and improved supply from oil receipts.
In the parallel market, however, DDM learnt that the naira traded between ₦1,470 and ₦1,480 per dollar, maintaining relative stability compared to the previous week.
The narrow gap between the official and black-market rates has been described by economic observers as a positive indicator of policy effectiveness and reduced arbitrage opportunities.
According to traders, dollar liquidity in the NFEM improved significantly due to higher crude oil prices and consistent CBN interventions aimed at stabilizing the market.
Coronation Merchant Bank’s weekly report noted that foreign exchange inflows rose to $1.42 billion, up from $1.25 billion the previous week, driven largely by renewed participation from foreign portfolio investors.
Economic analysts believe that the EFEMS trading platform, adopted officially in December 2024, continues to enhance transparency and market efficiency, reducing speculative activity that once fueled volatility in the exchange rate.
Nigeria’s gross foreign reserves also grew modestly to $42.91 billion, up by 0.35% week-on-week, bolstered by improved oil exports and lower outflows.
Experts project that the naira could maintain an exchange band below ₦1,500 per dollar in the near term if inflows remain consistent and inflationary pressures are contained.
While challenges persist in the informal market, the CBN’s reform measures appear to be gradually restoring investor trust and strengthening the naira’s position.
Market observers say continued fiscal discipline, increased exports, and sustained FX inflows will be critical to maintaining the current momentum in the months ahead.
