The Nigerian Naira closed January 2025 at N1,475 to the dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), marking its most robust performance since June 2024. This represented a significant gain from its December 31, 2024, closing rate of N1,535/$1, reflecting a N60 increase or 3.91% month-on-month improvement.

Throughout January, the Naira fluctuated between N1,560 and N1,506 to the dollar, with the final days of the month seeing a notable appreciation. On January 30, the Naira exchanged for N1,493/$1, and by January 31, it had strengthened further to close at N1,475, the highest since June 11, 2024, when it stood at N1,473/$1.

On a year-on-year basis, the Naira showed a modest gain, improving by 1.33% from the NAFEM rate of N1,455.59/$1 on January 31, 2024.

Despite the positive movement in the Naira, analysts caution that market fluctuations remain influenced by external factors such as oil prices, remittance flows, and investor sentiment towards Nigeria's economy. The Central Bank of Nigeria (CBN) is expected to continue its interventions to maintain stability in the foreign exchange market.

The CBN has implemented a variety of policies aimed at stabilizing the Naira, including tightening regulations on Bureau De Change operators and increasing dollar liquidity in the official market. Additionally, the CBN recently introduced the Nigeria Foreign Exchange (FX) Code, which establishes clear, enforceable standards for market conduct and will penalize any violations.

To further ease financial burdens on Bureau De Change operators, the CBN also waived the 2025 non-refundable annual license renewal fee, demonstrating its commitment to improving transparency and efficiency in the foreign exchange market.