The Nigerian Naira experienced a marginal weakening this week, settling at N1,467.01 per US dollar on Tuesday, a slight drop from Monday’s close of N1,460/$1, according to data from the Central Bank of Nigeria (CBN). This follows a strong performance last week, with the Naira reaching N1,458/$1 on Friday—its best showing in 2024—driven by the CBN’s ongoing efforts to bolster the foreign exchange market.
In the parallel market, the Naira fluctuated between N1,498 and N1,504 per dollar, reflecting persistent volatility in informal trading channels. The currency had started the previous week at N1,464/$1 before dipping to N1,472/$1 by Tuesday.
Foreign Reserves on the Rise
Nigeria’s foreign exchange reserves climbed to $42.6 billion, up from $42.5 billion the previous day, signaling steady growth since mid-July 2025. Analysts attribute this uptick to increased oil export revenues, which are expected to strengthen the CBN’s capacity to stabilize the Naira and counter speculative pressures.
A recent Standard Bank report adjusted its Naira forecast, projecting the currency to reach N1,458.8/$1 by the end of 2025 and N1,473.0/$1 by December 2026. The bank noted that sustained reserve growth would enable the CBN to manage currency fluctuations and facilitate smoother market exits for foreign investors.
Inflation Continues Downward Trend
Despite the Naira’s minor depreciation, Nigeria’s inflation outlook remains optimistic. Analysts predict a continued decline in September 2025, marking a potential sixth consecutive month of easing price pressures. This positive trend is attributed to a stable exchange rate, improved food availability, and steady energy costs.
The National Bureau of Statistics (NBS) reported that headline inflation fell to 20.12% in August 2025, down from 21.88% in July, reflecting a slower rise in average price levels. The NBS is set to release its September Consumer Price Index report on Wednesday, which could further confirm the effectiveness of the CBN’s fiscal and monetary policies.
The CBN’s multifaceted approach—combining tighter monetary measures, disciplined fiscal policies, and proactive FX management—has been credited with fostering macroeconomic stability, offering hope for sustained economic improvements in Nigeria.
