Nigeria, Feb. 3 -- The Nigerian naira surged to an eight-month high of 1,474.78/$ on Friday, driven by fiscal and monetary policies that have reduced demand for the U.S. dollar.

This marks a notable improvement from June 3, 2024, when the naira traded at 1,485.99/$ on the Nigerian Foreign Exchange Market (NFEM).

Key Drivers Behind the Naira's Gains

Several factors have contributed to the naira's recovery:

Increased Domestic Refining: The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, began petrol production in September 2024, reducing Nigeria's dependency on fuel imports. The decline in Fuel Imports: By January 2025, Nigeria's petrol imports had fallen to an eight-year low, with daily imports dropping to arou...