The naira strengthened significantly against the United States dollar after the Central Bank of Nigeria (CBN) officially opened the foreign exchange market to Bureau De Change (BDC) operators. The local currency appreciated to N1,348 per dollar, marking its strongest level in 14 months. The development followed the apex bank’s decision to allow BDCs access to the official foreign exchange window, with a weekly purchase cap of $150,000.
The move is part of ongoing efforts by the CBN to improve liquidity in the retail foreign exchange segment and stabilise the naira. By permitting BDC operators to source dollars directly from the official market, the central bank aims to ease pressure on the parallel market and narrow the exchange rate gap. The policy is also designed to enhance transparency and curb speculative activities in the FX market.
The appreciation of the naira reflects improved market sentiment and increased dollar supply. Analysts attribute the currency’s strengthening to renewed confidence in the CBN’s reforms and sustained interventions aimed at boosting foreign exchange inflows. The N1,348 rate represents a notable recovery compared to previous months when the naira faced persistent volatility.
Under the new framework, each eligible BDC is allowed to purchase up to $150,000 weekly from authorised dealers. The CBN expects the measure to ensure that retail-end users, including travelers and small businesses, have better access to foreign currency. The cap is intended to prevent abuse while ensuring a steady and controlled distribution of FX to the segment.
The decision to integrate BDCs more formally into the official FX market follows months of regulatory adjustments by the apex bank. Authorities have repeatedly stated their commitment to restoring order and stability in the foreign exchange market. The inclusion of BDCs is seen as a strategic step toward deepening market efficiency and improving price discovery.
Meanwhile, Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, disclosed that capital importation into Nigeria rose to $21 billion in the first 10 months of 2025. The figure signals renewed investor confidence amid ongoing economic reforms. According to her, the increase in inflows demonstrates that policy adjustments are yielding positive results.
Oduwole noted that improved foreign exchange management and structural reforms have contributed to the rise in capital inflows. She emphasised that sustained macroeconomic stability remains a priority for the government. The minister also pointed to ongoing efforts to create a more predictable and investor-friendly business environment.
Market observers say the rebound of the naira is closely linked to higher FX liquidity and improved capital inflows. The $21 billion recorded within 10 months represents a significant increase compared to previous periods marked by subdued investment activity. Investors have responded positively to measures aimed at unifying exchange rates and reducing arbitrage opportunities.
The CBN has maintained that its broader objective is to achieve a stable and market-driven exchange rate system. Recent reforms include clearing FX backlogs, tightening monetary policy, and enhancing transparency in FX transactions. These steps have been widely viewed as necessary to rebuild credibility in the financial system.
Financial analysts believe that sustained discipline in FX management will be critical to maintaining the naira’s gains. They caution that global economic conditions, oil price movements, and external shocks could still pose risks.
However, they acknowledge that current trends suggest improved resilience in Nigeria’s foreign exchange market.
The strengthening of the naira to a 14-month high marks a significant milestone in the country’s currency management efforts. By opening the official FX window to BDCs and maintaining a structured allocation system, the CBN appears focused on balancing accessibility with stability. The combination of improved liquidity and rising capital importation has provided fresh support for the local currency.
As reforms continue, stakeholders will closely monitor the sustainability of the naira’s recovery. The coming months are expected to test the durability of the CBN’s measures and the broader economic reform agenda. For now, the appreciation to N1,348 per dollar signals a positive shift in Nigeria’s foreign exchange landscape.
