For much of the past decade, Nigeria’s foreign exchange market was the economy’s most visible fault line. Multiple exchange rates and administrative allocations created distortions and discouraged investment, contributing to periodic shortages of dollars for imports and speculation that amplified naira volatility. These distortions began to reverse in earnest following the comprehensive reforms introduced by the Central Bank of Nigeria (CBN) from 2023 onward. Authorities unified FX pricing, tightened regulatory oversight of authorised dealers, and improved transparency. As a result, FX market turnover surged. According to CBN data, monthly FX turnover rose by 56.4% in 2025 to about $8.6 billion, up from $5.5 billion in 2024, reflecting deeper liquidity and market participation under the new framework. Gross foreign exchange reserves strengthened to around $46.7 billion, their highest level since 2018 and providing over 10 months of import cover — a level that materially cushions external shocks and reinforces monetary credibility. These improvements mark a significant departure from the ex ante scarcity that characterised previous years.