Naira Rises To ₦1,421/$, Stocks Gain ₦35 Trillion in Market Surge
Atume Terfa
Nigeria’s financial markets are showing renewed strength, with the naira and equities charting a promising rebound that could signal a turning point for Africa’s largest economy.
The Nigerian naira appreciated to ₦1,421.73 per U.S. dollar at the official window — its strongest level since the Central Bank of Nigeria (CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS). This improvement, according to ThisDay and New Telegraph, marks a major stride in efforts to stabilise the currency and restore investor confidence.
At the same time, the Nigerian Exchange Limited (NGX) recorded an unprecedented ₦35.07 trillion growth in market capitalisation in just ten months of 2025 — rising from ₦62.76 trillion in January to ₦97.83 trillion by October. The benchmark All-Share Index also crossed the 150,000-point mark for the first time, underscoring the market’s resilience and investor optimism.
Analysts attribute the naira’s rebound to a combination of market reforms, increased foreign inflows, and stronger reserves.
Improved liquidity: Exporters, non-bank corporates, and foreign portfolio investors have injected fresh forex into the system, easing pressure on the naira. (New Telegraph)
Growing reserves: Nigeria’s external reserves have risen, creating a firmer buffer against external shocks. (MarketForces Africa)
Policy reforms: The CBN’s ongoing efforts to unify exchange rates and curb arbitrage have helped narrow the gap between the official and parallel markets. (ThisDay)
Despite these gains, experts warn that the gap between official and street-market rates remains wide, signalling persistent structural imbalances that could weigh on long-term stability. (Vanguard)
The rally in Nigerian equities has been broad-based, spanning banking, oil and gas, telecoms, and consumer goods sectors.
In October alone, the market added ₦7.25 trillion, driven by investor optimism, corporate earnings, and spillovers from the strengthening currency. Analysts believe the rally mirrors growing confidence in ongoing economic reforms and a gradual return of foreign capital.
Stronger naira: A firm currency reduces import costs, stabilises inflation, and boosts consumer purchasing power.
Equity boom: The market’s ₦35 trillion gain points to increasing investor trust — a sign of economic repositioning.
Policy validation: The dual improvement in the currency and equities markets reflects early success of CBN and fiscal reforms aimed at restoring macroeconomic balance.
While these gains offer optimism, experts remain cautious. Inflation remains in double digits, energy costs are high, and many businesses continue to grapple with dollar-linked obligations. The parallel-market spread also underscores that Nigeria’s FX market is not yet fully harmonised.
Moreover, some analysts suggest the market rally may be more liquidity-driven than fundamentally based, raising concerns of volatility if external conditions shift.
As Nigeria closes in on the year’s end, the twin strength of the naira and equities paints a picture of cautious recovery. If reforms stay consistent and confidence deepens, 2026 could mark the start of a more stable financial era — one driven by policy discipline, investment inflows, and sustained productivity.
In essence: The numbers are encouraging, but the test of endurance has just begun.
