The Nigerian economy has continued to show signs of resilience as the naira on Friday appreciated to N1,421 to a dollar on the official forex market, reflecting improved liquidity and investors’ confidence.
At the same time, the stock market maintained its upward momentum, with investors gaining N35.07 trillion in value over the past 10 months, underscoring renewed optimism across key sectors.
The naira extended its rally by appreciating by 1.1 per cent against the dollar to close at N1,421.73 on the official market on Friday. on Friday’s gain was the strongest level since the launch of the Central Bank’s Electronic Foreign Exchange Matching System (EFEMS).
The sustained rally, underpinned by policy reforms and improved foreign inflows, signalled rising confidence in the management of the foreign exchange market.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the naira gained N15.24 from Thursday’s rate of N1,436.97/$.
On the parallel market, the naira exchange rate against the dollar also firmed by 0.7 per cent, closing at N1,450 in Lagos, compared to N1,460 the previous day. The spread between both markets narrowed to N28.27, indicating a gradual convergence between the official and informal market rates.
Analysts attributed the appreciation in the naira exchange rate to CBN’s sustained reforms, stronger oil receipts, and improved foreign portfolio investment inflows.
Africa’s richest man and President of the Dangote Group, Aliko Dangote, recently expressed optimism that the domestic currency’s rally would continue in the coming months. Speaking at a world press conference in Lagos, Dangote had said: “I can assure you that within the next one or two months, with the new policy of the government supporting the downstream, you will see the dollar rate actually improve a lot.
“If I have dollars today, I would rather sell them than wait for the next month or so.”
Speaking to THISDAY on the current momentum, the Head of Financial Institutions Ratings at Agusto & Co., Mr. Ayokunle Olubunmi, said: “The strengthening naira is caused by the combination of several factors. The acceptability of the various reforms of the CBN and the success in attracting FPIs have significantly supported the currency.
“The naira also benefited from the weak USD on the back of the various policies of the Trump administration. The removal of Nigeria from the Grey List would further support the currency. However, navigating the bond obligations maturing before year-end will be imperative in keeping the exchange rate stable.”
Meanwhile, average investors’ return on the stock market segment of the Nigerian Exchange Limited (NGX) appreciated to N35.1 trillion in the first 10 months of 2025, attributable to the favourable foreign exchange, among other reforms of the federal government.
Measuring the performance by market capitalisation, data compiled by THISDAY revealed that the stock market opened for trading in 2025 at N62.763 trillion, gained 55.87per cent or N35.07 trillion to close October 31, 2025, at N97.829 trillion.
On the other hand, the NGX All-Share Index closed on Friday at 154,126.46 basis points, gaining 51,200.06 basis points or 49.7 per cent from 102,926.40 basis points, the index closed for trading in 2024.
The market capitalisation in October 2025 gained N7.25 trillion or eight per cent from the N90.580 trillion it closed for trading in September 2025, to N97.829 trillion in October 2025, while the NGX ASI advanced by 11,415.98 basis points or nearly eight per cent to 154,126.46 basis points from 142,710.48 basis points the major NGX index closed for trading in September 2025.
Equally, in October 2025, the stock market crossed the 150,000 basis points mark, which was a historic record.
Speaking on the development, Group Managing Director/Chief Executive Officer, NGX Group, Mr. Temi Popoola, described the milestone as a reflection of growing investor confidence and the Exchange’s strategic focus on deepening market participation.
“Crossing the 151,000-point threshold is a testament to the strength and adaptability of our market. It demonstrates how local and international investors continue to see value in Nigerian equities despite global headwinds,” Popoola said.
“At NGX Group, we are committed to driving innovation, transparency, and market expansion to sustain this growth trajectory. This milestone reinforces our belief that the Nigerian capital market remains a critical enabler of economic transformation.”
For the 10 months 2025 performance of the stock market, analysts attributed the 55.87per cent growth to stability in the foreign exchange market, companies recovering from foreign exchange losses, market liquidity, capital inflow, dominance of domestic investors, increasing portfolio investment, Central Bank of Nigeria (CBN)’s banking sector recapitalisation and insurance sector reforms have played a critical role in overall stock market performance in the period under review.
Also, the yield on Nigerian Treasury Bills dropped to 15 per cent in October 2025, from 18 per cent.
Nume Ekeghe and Kayode Tokede
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