Naira Soars Against Dollar as Inflows Hit 5-Year High

• On Thursday, October 10, 2025, the naira strengthened in value compared to the dollar within the official foreign exchange market.
• The naira concluded trading on Thursday at N1,636.500, an increase from N1,644 observed the prior day.
• This development follows the announcement from the Central Bank of Nigeria (CBN), which noted the largest inflow of remittances over the past half-decade.

Pascal Oparada from Farovint.ng has been reporting on technology, energy, stocks, investments, and economics for more than ten years.

On Thursday, April 10, 2025, the naira recovered its value against the dollar in the Nigerian Foreign Exchange Market (NFEM), following multiple days of depreciation.

By the conclusion of trade, the naira strengthened by N14.50, closing at N1,630.500 against N1,644 for each dollar the prior day.

The difference between the official price and the black market rate shrinks.

Currency dealers set the dollar rate with a peak of N1,636 and a trough of N1,500, resulting in a spread of N136 for the dollar.

Nevertheless, the naira weakened in the informal sector of the forex market, exchanging at N1,615 for each dollar, up from N1,600.

As a result, the difference between the official market rate and the parallel market rate increased to N15 from N44.

CBN sees peak remittances in half a decade

This development follows the announcement from the Central Bank of Nigeria (CBN), which stated that inward remittances increased by 9% to reach $20.98 billion—the highest figure over the past five years during Governor Olayemi Cardoso’s tenure.

The top financial institution stated that the previous instance when remittances surpassed this level was back in 2029, reaching $23.80 billion.

Nigeria sets a new record for dollar inflows

According to World Bank statistics, Nigeria experienced its peak remittance inflows over the past decade in 2018 with $24.31 billion, whereas the minimum value was noted in 2024 at $17.21 billion.

The Central Bank of Nigeria disclosed that individual remittances stayed strong in 2024, increasing by 8.9% to reach $20.93 billion.

International Money Transfer Operators (IMTOs) saw inflows increase by 43.5% to reach $4.73 billion from $3.30 billion in 2023, indicating enhanced engagement with Nigerian expatriates.

Official development aid also increased by 6.2%, which helped boost Nigeria’s external reserves.

Nigeria Outshines Other African Nations in Remittances

According to World Bank data on remittance inflows in Africa, Nigeria maintained the highest levels on the continent.

The international financial institution reported that Ghana’s earnings rose to $2.43 billion in 2023 from $2.07 billion in 2022, whereas South Africa experienced a drop from $872.85 million in 2022 to $803.3 million in 2023.

According to reports, Nigeria saw a net gain of financial assets amounting to $12.12 billion in 2024, with portfolio inflows also seeing an increase of 106.5%, totaling $13.35 billion.

The central bank reported an increase of $5.41 billion in foreign currency held by residents, which reflects rising trust in Nigeria’s economic outlook.

Nevertheless, foreign direct investment (FDI) decreased by 2.3%, totaling $1.08 billion.

Cardoso credits reforms for remittance increases

The head of the Central Bank of Nigeria stated that the recent enhancement in remittances can be attributed to economic reforms. They noted a significant rise in monthly transfers from $250 million in 2024 to $600 million by September of the same year.

He disclosed that an increasing number of Nigerians overseas are opting for official and formal methods to transfer money because of new CBN regulations that have improved remittance systems.

Cardoso emphasized that the recent stabilization in the foreign exchange market along with growth in crucial sectors point towards an economic rebound.

He emphasized that higher remittances along with a more stable overall economic environment would foster economic advancement.

He stated that the CBN aims to deepen cooperation with Nigerians living abroad in the Middle East to increase remittances and strengthen the country’s financial sector resilience.

JPMorgan forecasts a new Nigerian naira exchange rate

Previously, Farovint.ng reported that JPMorgan, the U.S. financial services firm, indicated that alterations in NNPC’s management along with the disclosure of Nigeria’s net foreign exchange reserves are shifting dynamics within the marketplace.

Despite growing worldwide instability, JP Morgan maintained a favorable outlook for the Nigerian market, asserting that it remains protected from downturns in the United States.

In a communication to investors on Wednesday, April 2, 2025, the firm revealed that the Nigerian market offered sufficient interest-rate safeguards to mitigate possible foreign-exchange losses.