The naira has continued its upward momentum, marking a week-long appreciation stretch across both official and parallel foreign exchange markets following the Eid-ul-Adha (Sallah) holidays, indicating growing confidence in the Nigerian economy and improved foreign exchange (FX) supply conditions.
According to market data, the naira appreciated to ₦1,605/$1 in the parallel market on Thursday, June 5, 2025—ahead of the public holidays—up from ₦1,610/$1 recorded the previous day.
By Tuesday, June 10, 2025, after the holidays, it further strengthened to ₦1,600/$1, showing a consistent positive trend.
The Federal Government had earlier declared Friday, June 6, and Monday, June 9 as public holidays to mark the Islamic festival, Eid-ul-Adha. Trading resumed on Tuesday, with analysts closely watching currency performance amid changing market dynamics.
Data from the Central Bank of Nigeria (CBN) revealed a similar appreciation pattern in the official FX market. On Tuesday, the naira closed at ₦1,540/$1, improving from ₦1,551/$1 the previous Thursday.
This trend continued on Wednesday, June 11, as the naira closed at ₦1,564/$1, appreciating from ₦1,579/$1 on Tuesday and ₦1,580/$1 on Monday.
This marks a complete week-long appreciation rally, starting from the week before the holidays—a performance that many experts attribute to renewed FX inflows, lower demand pressures, and policy interventions by the CBN to stabilize the market.
In the black market, which often serves as an alternative benchmark for FX pricing, data from BDC (Bureau De Change) operators in Lagos confirmed the strengthening naira. On Tuesday, the naira traded at ₦1,600/$1, a rise from ₦1,605/$1 on Thursday and ₦1,610/$1 on Wednesday.
Despite minor midweek fluctuations, the overall trajectory remained positive for most of the post-holiday trading period.
The post-Sallah currency performance stands in sharp contrast to what was observed after the Easter holidays in April 2025, when the naira weakened both in the official and parallel markets.
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The post-Easter trend had signaled market instability due to FX liquidity challenges and sustained dollar demand. In contrast, the post-Sallah appreciation suggests a more resilient and liquid FX environment, with improved investor sentiment and better policy alignment.
Financial analysts say the naira’s recent performance reflects a strengthening confidence in the economy, particularly in light of ongoing monetary reforms, efforts to unify exchange rates, and a more transparent FX market.
The narrowing gap between the official and parallel market rates is seen as a positive signal, suggesting a gradual convergence and greater market efficiency.
“This sustained rally points to improving fundamentals,” said a Lagos-based FX analyst. “Liquidity is easing, and speculative pressure appears to be weakening. If this trend continues, we could see more predictable FX flows and reduced volatility.”
While the naira’s appreciation post-Sallah is encouraging, economists caution that sustained improvement will depend on continued reforms, adequate FX reserves, stable oil revenues, and investor confidence in Nigeria’s macroeconomic policy direction.
Nonetheless, for now, the naira’s resilience marks a notable departure from previous holiday-related dips and offers cautious optimism for the rest of Q2 2025.