Nigeria’s currency has continued its remarkable rebound against the dollar in the official foreign exchange market, driven by renewed investor confidence and stronger forex inflows.

Experts say the naira’s recent momentum reflects a wave of optimism following Nigeria’s removal from the Financial Action Task Force (FATF) grey list, a move that has reignited global confidence in the country’s economy.

Investors’ confidence returns

At the close of trading on Monday, October 27, 2025, the naira appreciated to N1,452 per dollar at the Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN).

The currency hit an intraday high of N1,457/$ before closing stronger, as dollar supply surged from offshore investors.

Market Forces Africa reports that the naira’s strong finish was supported by increased forex supply from foreign portfolio investors (FPIs), exporters, and non-bank corporates.

The renewed inflows have eased pressure on the demand side, with some traders transacting at intraday lows of N1,450/$.

Coronation Merchant Bank revealed in its weekly update that forex inflows via the NFEM improved by 25% week-on-week, rising to $1.37 billion from $1.10 billion the previous week.

FPIs contributed 33.52%, or $460 million, of total inflows, followed by exporters (14.92%), non-bank corporates (10.76%), and the CBN (6.63%).

Economists predict that the official rate could remain below the N1,500 mark for the foreseeable future if forex supply continues at this pace.

Experts cheer naira’s resilience

“We’re seeing the fulfillment of analysts’ predictions that the naira could hit N1,400–N1,450 this year,” said Janet Ogochukwu, a senior banker and economist, in an interview with Legit.ng.

She attributed the rally to Nigeria’s rising external reserves, which recently climbed to a five-year high of nearly $43 billion.

“The naira is defying doomsayers,” she added. “This shows renewed confidence in Nigeria’s monetary reforms and fiscal discipline.”

Oil market boosts outlook

The naira’s rally coincides with a surge in global oil prices. Brent crude gained more than 7% in a week, buoyed by the U.S. government’s new sanctions on major Russian producers Rosneft and Lukoil, companies responsible for about 5% of global output.

The oil price boost, coupled with growing optimism around an upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping has further strengthened market confidence.

With oil prices climbing and investors rushing in, analysts say the stars may finally be aligning for Nigeria’s economic rebound.