The Naira sustained its gain momentum against the United States Dollar (USD) on Monday, trading below the N1.550/$ range at the parallel market which was the first trading session in September 2025
The Nigerian national currency closed August on a bullish trend in the Foreign Exchange (FX) market, closing at 1,531.57/$.
The improved performance of the Naira at both official and parallel FX markets in August is not unconnected to improved inflow of foreign currencies into the country due to higher remittances and foreign portfolio investments (FPIs).
This is even as Nigeria’s external reserves grew by $1.72 billion to $41.3 billion, providing the Central Bank of Nigeria (CBN) a platform and some capacity to defend the local currency.
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It would be recalled that the apex bank governor, Yemi Cardoso, reported that Nigeria diaspora’s remittances increased by a 200% rise to $600 million in the last two months, a positive development that strengthened the liquidity mechanism in the FX market.
According to the CBN data, foreign investment inflows rose from $1.5 billion in June to $1.7 billion in July, reflecting renewed interest of foreign investors in the nation’s economy.
Cardoso maintained that due to improved exchange rates and remittance services, Nigerians living abroad no longer need alternative channels to remit foreign earnings to Nigeria, adding that increasing diaspora inflows could help reduce the country’s reliance on oil revenue and diversify its FX sources.
