As of January 31, 2025, the Nigerian naira appreciated by N63.72 against the U.S. dollar, closing at N1,474.78 per dollar in the official market. This marks a 4.14% increase, bringing the naira to its strongest position since June 11, 2024, when it traded at N1,473.88 per dollar.

The appreciation is attributed to policies implemented by the Central Bank of Nigeria (CBN) that have influenced market dynamics and enhanced the currency's strength. Additionally, optimism surrounding the clearance of a $7 billion foreign exchange backlog and improved liquidity contributed to a 3.68% week-on-week appreciation of the naira, closing the week at N1,474.78 per dollar, up from N1,531.20 per dollar the previous week.

In the parallel market, the naira also strengthened, closing at N1,610 per dollar on January 31, 2025, compared to N1,630 per dollar the previous day.

The Nigerian Economic Summit Group (NESG) projects that, if the country adheres to an optimal stabilization pathway, the naira could appreciate to an average exchange rate of N1,300 to the U.S. dollar in 2025.

These developments reflect a positive trend in the naira's value, influenced by strategic policy implementations and market optimism.