Naira Gains More Momentum as Pound Sterling Trades Below ₦1,900 in November Rally

The Nigerian Naira has continued its impressive resurgence against major global currencies, with the British pound sterling remaining below the ₦1,900 mark in both official and parallel markets during the first week of November.

Data from the official Nigerian Foreign Exchange Market shows that the pound-to-naira exchange rate traded between ₦1,885 and ₦1,890/£ at the close of the week’s final trading session.

Throughout the week, the rate fluctuated mildly within the ₦1,877 to ₦1,896 range, reflecting growing market stability and sustained investor confidence.

In the parallel market, the pound sold at slightly higher rates due to premiums but remained below ₦1,950/£, underscoring the local currency’s resilience and consistent appreciation trend since October.

This upward movement marks a notable turnaround for the Naira in 2025, following months of volatility in the foreign exchange market. Analysts attribute the sustained recovery to the Central Bank of Nigeria’s (CBN) market-driven reforms, improved foreign reserves, and enhanced capital inflows.

These measures have strengthened liquidity and helped reduce speculative pressure on the local currency.

At the dollar window, the Naira traded between ₦1,435 and ₦1,438/$ in the official market, while mid-market rates hovered around ₦1,436 on November 7. The official closing rate of ₦1,435.03 represented a marginal 0.22 per cent drop from the previous session. In the parallel market, rates were slightly higher, ranging between ₦1,440 and ₦1,450/$.

So far in 2025, the Naira has recorded significant gains, with the USD/NGN exchange rate strengthening by roughly 7 to 14 per cent. The year’s trading range shows a low of ₦1,425–₦1,444 and a high of ₦1,607–₦1,624, last recorded in May.

Economists say that while Nigeria’s improved foreign exchange reserves have provided a buffer against external shocks, long-term stability will depend on the country’s success in diversifying its economy beyond oil exports.

Meanwhile, trade relations between Nigeria and the United Kingdom remain strong, bolstered by post-Brexit trade frameworks, the Commonwealth partnership, and long-standing bilateral ties.

The Naira’s current resilience, experts note, reflects growing market confidence in Nigeria’s fiscal direction — a positive signal for investors and the broader economy as 2025 progresses.