The Nigerian naira has strengthened significantly against the euro, closing at ₦1,497 per euro and breaking below the ₦1,500 mark for the first time since April 2024.
According to the latest data from the Central Bank of Nigeria (CBN), the development reflects a sustained improvement in the naira’s performance against major foreign currencies.
The naira had weakened considerably following foreign exchange market reforms and the currency’s devaluation in 2024, with the euro exchange rate rising to as high as ₦1,800. However, the EUR/NGN rate has since declined from around ₦1,684 late last year to its current level of ₦1,497.
Against the US dollar, the naira has also remained relatively stable, trading around ₦1,327–₦1,330 per dollar in the official Nigerian Foreign Exchange Market (NFEM). The stability has been supported by central bank liquidity measures and relatively stable foreign exchange reserves.
The narrowing gap between official and parallel market rates has also improved price discovery and reduced opportunities for currency arbitrage. In the parallel market, the US dollar has recently traded between ₦1,370 and ₦1,390.
The naira’s recent gains against the euro are partly linked to the euro’s weakening against the US dollar in the international foreign exchange market. Since the naira has remained relatively stable against the dollar, the euro’s decline against the greenback has translated into a stronger naira-euro exchange rate.
Foreign exchange reforms, tighter monetary policy and greater transparency in official FX markets have also helped reduce speculative demand.
Another factor supporting Nigeria’s foreign exchange position is increased domestic refining capacity, particularly the Dangote Refinery, which has reduced the country’s dependence on imported petroleum products and helped conserve foreign exchange reserves.
Strong agricultural exports and elevated crude oil prices have also contributed to Nigeria’s foreign exchange earnings and trade position.
Euro Weakens Against US Dollar
The euro has also come under pressure in global currency markets, falling to its weakest level since May 2025.
The common currency declined by 0.8% to $1.1161 during Asian trading, as investors raised concerns over political and fiscal developments across the Eurozone.
Investor concerns were further heightened by reports surrounding preparations for an early election in Spain, while the premium demanded on French government debt over German bonds reached its highest level since 2011.
Market sources said short-term funds in Asia were selling euros in exchange for US dollars, adding to downward pressure on the European currency.
Political uncertainty in France has also weighed on investor sentiment, with opposition parties showing limited willingness to negotiate with President Emmanuel Macron’s outgoing government ahead of the upcoming election.
The euro’s decline has consequently contributed to the naira’s recent appreciation against the European currency.
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