The Naira Showed Stability Against the US Dollar in May

Data from the Central Bank of Nigeria (CBN) revealed that in May 2025, the Naira had an average value of ₦1,595 per US dollar in the official foreign exchange market. This indicates a month-on-month stability of the currency against the US dollar, as it maintained a similar average in April.

The Naira’s relative stability against the US dollar is likely attributed to the rise in the country’s foreign reserves. In May 2025, the CBN introduced the Non-Resident Diaspora Bank Verification Number (NRBVN) platform aimed at enhancing financial integration with Nigerians living abroad and increasing foreign exchange inflows through higher remittances, thereby fortifying the Naira.

Furthermore, the reduction in the disparity between official and parallel market exchange rates may have played a significant role in the currency’s stability against the USD. Nevertheless, further policies are required to ensure ongoing currency stability and strength. Some of these measures include supporting local enterprises to create import substitutes by improving access to credit and technology.

Additionally, crucial investments in the health and education sectors are vital to diminish the reliance on foreign services such as medical tourism, which would help conserve foreign exchange. SOURCE: CSEA Africa