Eighteen months later, the results are visible. By August 2025, the naira had strengthened to ₦1,525 per dollar, gaining more than 15% in five months a pace that annualises to nearly 49%. This resurgence was anchored by a cocktail of deliberate policies: a surge in oil revenues, record diaspora remittances, and the settlement of over $4 billion in foreign exchange arrears that had long sapped investor confidence. Most decisive of all was the consolidation of Nigeria’s multiple exchange windows into one transparent market rate, finally allowing the naira to trade at a value shaped by supply and demand.
The implications reach far beyond currency charts. For years, an artificially propped-up naira made Nigerian exports overpriced abroad, undermining competitiveness. Once freed, the recalibrated exchange rate altered the arithmetic. From cocoa to sesame and manufactured goods, Nigerian products suddenly became more affordable in New York, Mumbai, and São Paulo without exporters earning less at home.
The impact was swift. Non-oil exports climbed to $3.225 billion in the first half of 2025, up from $2.696 billion a year earlier a rise of nearly 20%. Export volumes also expanded from 3.83 million to 4.04 million metric tonnes, proving that demand was driven by quantity, not just higher prices.
The reforms unlocked a virtuous cycle:
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Nigerian products gained global price competitiveness.
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Exporters earned higher naira returns, spurring reinvestment in processing and value addition.
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Fresh export inflows replenished FX reserves, reinforcing the naira’s strength.
Economists describe this as a textbook feedback loop. FX reforms produced a realistic exchange rate, which boosted exports, which in turn drove dollar inflows, stabilising the naira and encouraging investor confidence. Each turn of the wheel strengthens the next.
For sceptics, the lesson is stark. A floating naira is not a symptom of weakness but a signal of resilience an instrument for long-term competitiveness. By stepping away from costly interventions and letting the market do its work, the government has positioned Nigeria for an export-led growth model that rewards productivity and attracts investment.
If this trajectory is sustained, the naira’s rebound will not just be a story of exchange rates, but of an economy beginning to harness its currency as a strategic lever on the global stage.
Yakubu is the director-general of
Budget Office of the Federation
