The Naira showed a modest appreciation against the US dollar in the official market, trading at ₦1,495.91 per dollar on February 25, 2025, compared to ₦1,497.11 the previous day. Despite this, the black-market rate remained slightly higher at around ₦1,498 per dollar, reflecting ongoing market pressures.
The Central Bank of Nigeria (CBN) continues its unified exchange rate system, merging all forex segments into the Investors & Exporters (I&E) window since June 2023. Under this framework, forex transactions for medicals, school fees, and small businesses remain accessible through banks, while rates are determined by market demand and supply. The CBN has also reintroduced a “Willing Buyer, Willing Seller” model to enhance transparency and ensure smoother trading activities.
With these measures, Nigeria has effectively adopted a floating exchange rate, allowing market forces to dictate the value of the Naira. While this approach aims to improve forex liquidity, the currency remains sensitive to external factors and economic policies. Market participants will be watching closely to see how these dynamics shape the future of Nigeria’s forex landscape.