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The Naira has increased to N1,535 in the official market and N1,555 in the black market, driven by the Central Bank of Nigeria's new Electronic Foreign Exchange Matching System (EFEMS). Black market operators predict further gains, with projections reaching N1,200 for the Naira by next week.

The Nigerian Naira has experienced significant appreciation against the US Dollar, with black market operators predicting that it could reach as low as ₦1,200 in the coming days. This surge is largely attributed to the Central Bank of Nigeria’s (CBN) new Electronic Foreign Exchange Matching System (EFEMS), which was introduced on December 2, 2024. According to banking experts, the new system has created a more transparent and real-time market environment, which has boosted the Naira’s value after months of depreciation.

Before this, the Naira had experienced a tumultuous year, with the official exchange rate rising from ₦907 per dollar in January to over ₦1,700 per dollar by October. The recent trend reversal, however, has been dramatic, with the Naira gaining 9.8% in just one week, closing at ₦1,535 and ₦1,555 in the official and black markets, respectively.

Black market operators, like Yakubu Giwa, have noted that the Naira's rise has made it difficult for traders to sell their dollars, with many fearing that the currency could continue to strengthen, possibly reaching ₦1,200 before the weekend. Factors contributing to this rise include seasonal inflows from Nigerians in the diaspora and increased domestic demand ahead of the holiday season.

Moreover, the Naira’s strength is not just limited to the Dollar. It is also appreciating against other currencies like the Euro and Pound Sterling, while gold prices have seen a significant dip. Despite the optimism, market operators remain cautious, aware that the currency’s upward momentum may not be sustainable in the long term.