The Nigerian naira experienced a slight decline in value on September 23, 2025, closing at N1,493.2 per US dollar in the official market, according to data released by the Central Bank of Nigeria (CBN). This marks a marginal depreciation from N1,491.49/$1 on Monday and N1,488/$1 on the previous Friday. In the parallel market, the naira also weakened, trading at N1,521.5/$1 on Tuesday compared to N1,518/$1 the day before, widening the gap between official and black-market exchange rates, as reported by sources in Wuse Zone 4, Abuja.
CBN Lowers Monetary Policy Rate
The depreciation followed the 302nd Monetary Policy Committee (MPC) meeting, where the CBN announced a 50-basis-point reduction in the Monetary Policy Rate (MPR), bringing it down from 27.5% to 27%. CBN Governor Olayemi Cardoso, speaking at a press briefing in Abuja, explained that the decision was driven by moderating inflation trends and improving macroeconomic conditions. The MPC also adjusted the asymmetric corridor around the MPR to +250/-250 basis points, a shift from the previous +500/-100 basis points, to ease monetary conditions while supporting disinflation efforts.
Cardoso emphasized that the policy adjustments aim to balance price stability with the need for increased liquidity to foster credit expansion and economic growth. The CBN’s measures are intended to support the banking sector’s capacity to provide credit, particularly to critical economic sectors.
External Reserves Reach Six-Year High
In a positive development, Nigeria’s external reserves rose to $42.03 billion, the highest level since September 2019, reflecting a consistent upward trend throughout September 2025. The reserves increased from $41.99 billion the previous day and $41.42 billion at the start of the month, achieving 13 consecutive daily gains over 14 reporting days, according to CBN data.
Economic Growth and Expert Reactions
The National Bureau of Statistics reported that Nigeria’s economy grew by 4.23% in real terms during the second quarter of 2025, fueled by strong performances in both oil and non-oil sectors. Analysts have urged the CBN to adopt flexible monetary policies to enhance credit access, particularly for small and medium enterprises (SMEs).
The Centre for the Promotion of Private Enterprise (CPPE) welcomed the CBN’s policy shift, with CEO Dr. Muda Yusuf describing it as a “strategic and timely” move to transition from economic stabilization to growth acceleration. Yusuf noted that, if supported by fiscal and structural reforms, the policy could drive investment, job creation, and inclusive economic growth.
Outlook
The CBN’s recent actions signal a cautious pivot toward stimulating economic activity while maintaining efforts to control inflation. However, the naira’s depreciation highlights ongoing challenges in stabilizing the currency. Analysts suggest that sustained policy coordination will be crucial to unlocking the full potential of these measures for Nigeria’s economy.
