Economy

Naira Strengthens Against Dollar, Hits 9-Month High

Published

12 months ago

November 1, 2025

Naira strengthens against the dollar to ₦1,421.73, marking its best close since February as investor confidence rises and inflation continues to ease

Naira strengthens against dollar as Nigeria’s currency capped a stellar week on Friday, appreciating to ₦1,421.73 per U.S. dollar at the official Investors and Exporters (I&E) window its strongest close since February and a remarkable reversal from months of volatility.

Also read: Naira Dips Third Day to N1,473.29 Per Dollar

The naira gained ₦15.23 or 1.07% against Tuesday’s rate of ₦1,436.97, extending a five-day rally that shaved nearly 2.2% off the dollar’s value in one week. The upbeat performance has rekindled investor confidence in Africa’s largest economy.

Data from the Central Bank of Nigeria (CBN) showed the local currency opened Monday at ₦1,452.79, dipped slightly to ₦1,448.20 on Tuesday, and strengthened steadily to Friday’s high.

The trend was mirrored in the parallel market, where rates eased to between ₦1,479 and ₦1,490 per dollar — down from over ₦1,500 just two weeks ago.

Trading volumes climbed 12% week-on-week at the official window, driven by rising foreign inflows, reduced dollar demand, and stabilising global oil prices.

Economists hailed the rally as a turning point for the battered naira, which had lost more than 70% of its value in 2024 following fuel subsidy cuts and pressure on foreign reserves.

Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list on October 24 has also boosted sentiment.

The milestone, achieved after three years of anti-money laundering reforms, restored the country’s credibility in global markets and cut compliance costs for banks by up to 20%, unlocking around $1.2 billion in new foreign direct investment (FDI) within days.

The currency’s strength is already easing inflationary pressures. Headline inflation, which peaked at 34.2% in June, dropped to 28.1% in October, aided by cheaper imports and a 5% decline in food prices.

Analysts believe the latest surge signals a renewed phase of economic stability, as tighter monetary policies and improved fiscal discipline begin to yield results.

Also read: Nigerian Naira Falls After Week of Gains

For millions of Nigerians, the naira’s rebound offers a glimmer of hope — a sign that confidence may finally be returning to the economy.

Related Topics:Central Bank of Nigeria economy Exchange Rate featured inflation Naira

Up Next

TAFTA Trains Women Creatives for Business Growth

Don't Miss

Mahmoud Alfa Urges Nigerians to Support 2026 Tax Reform

theheute

Click to comment

Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

1 day ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.