The naira’s recent stability is seen as a positive indicator of President Bola Tinubu’s economic reforms. Despite falling oil prices, the naira has stabilized, trading around ₦1,530 per dollar, largely flat on a year-to-date basis. Analysts attribute this stability to the currency’s undervaluation, higher non-oil exports, and lower import demand.

The naira’s fortunes have also been helped by a weakening US dollar, which is down more than 10% this year, and less dependency on imported refined products. President Tinubu’s administration has implemented various reforms, including the removal of fuel subsidies and the unification of exchange rates, aimed at enhancing transparency and reducing distortions.

Nigeria’s fiscal deficit dropped from 5.4% of GDP in 2023 to 3.0% in 2024, while foreign reserves rose from $4 billion in 2023 to over $23 billion by the end of 2024. Foreign direct investment commitments have increased, including $14 billion pledged by Indian investors during President Tinubu’s state visit in September 2023.

Major projects are underway, including the completion of the Second Niger Bridge, which has enhanced connectivity for over 40 million people in the South-East region. The administration has distributed 1 million bags of fertilizer to farmers and invested in mechanized farming, projected to increase crop yields by 20% in 2024.

Nigeria signed agreements to generate an additional 2,000 MW of power from renewable sources by 2025, reducing outages by 30% in Lagos and Abuja. President Tinubu believes the naira for crude transactions will stabilize the oil sector by removing the exchange rate hurdle.

Analysts expect the naira to end the year near ₦1,556 per dollar, its average exchange rate in the first six months of 2025. Some experts, however, note that the naira’s stability may be influenced by various factors, including increased crude oil production, non-oil exports, and fiscal discipline.