Experts Advise Nigerians on What To Do as Naira Gains 9%, Steadies Across Markets

• Bismarck Rewane has warned policymakers against being reckless amid recent stability and increasing predictability of the naira
• The economist said the quick currency appreciation should not be "carried away" by Nigerian authorities
• The naira held steady on foreign exchange (FX) markets in spite of a continuous decline in external reserves

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The managing director and CEO of Financial Derivatives Company (FDC), Bismarck Rewane, has cautioned policymakers against becoming careless due to the naira's recent stability and increased predictability.

The economist cautioned Nigerian authorities not to be "carried away" by the rapid currency appreciation, saying it is "temporary" and should be handled carefully.

“We’re seeing that the naira is strengthening but with caution. Let’s not be too hasty because it’s going to correct itself,” Rewane said at a presentation on Channels Television Friday.

“There are many things that are happening: reserves of over $40 billion are coming down. We’ve also borrowed $4 billion in bond issues.

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“When you look at all of that, we’ve almost spent $8 billion to support the naira at the current levels,” he revealed.

However, despite a persistent drop in external reserves, which have lost more than $3 billion this year, the naira remained stable throughout foreign currency (FX) markets.

Weekly data from the Central Bank of Nigeria (CBN) indicated that the value of the naira increased to N1,502.50 per dollar, up 0.56 percent or N8.50 from the previous week's closing price of N1,511/$ at the Nigerian Foreign Exchange Market (NFEM).

The dollar was quoted by authorized currency traders at its highest rate of N1,509 on Friday, which was higher than N1,520 on Friday of last week.

Compared to N1,500 at NFEM last week, the market recorded the lowest rate of N1,491 per dollar on Friday.

As the dollar quoted at N1,510 on Thursday and Friday from N1,555 on Friday of previous week, the naira gained N45, or 2.0 percent, in the parallel market, also known as the black market.

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Naira gains 9% in 2025

Rewane did point out that the local currency had gained 9% so far in 2025, but caution should be exercised in light of the naira's recent stability.

The naira has continued to rise since December, when the CBN implemented a number of changes to guarantee market efficiency and transparency.

He emphasized the lifting of inflationary pressures and pointed to a positive outlook for the nation's GDP growth.

“On the bright side, the Nigerian naira has appreciated by 9 percent in 2025, inflation pressures are easing and GDP growth is positive. Petrol/diesel prices are cooling and the PMI is expanding,” he said.

Rewane believes naira is undervalued

Legit.ng reported that Bismarck Rewane, chief executive officer of Financial Derivatives Company, has restated that the naira current exchange rate is undervalued by 27.81%.

Rewane also said that he expects the naira at N1,550/$, while the black market rate is expected to close at N1,600/$ in the parallel market by Q1 2025.

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He expressed these views in his February 2024 presentation at the Lagos Business School (LBS) Breakfast Session.

Source: Legit.ng