The naira began the week on a mild retreat, slipping to N1,467.01 per dollar on Tuesday from N1,460/$1 the previous day, according to figures from the Central Bank of Nigeria (CBN). The currency had closed last Friday at N1,458/$1, marking its strongest level since 2024 as the apex bank continues efforts to steady the foreign exchange market.
At the parallel market, rates hovered between N1,498 and N1,504 per dollar. Despite the slight dip, Nigeria’s external reserves rose marginally to $42.6 billion, reflecting a steady increase since mid-July driven by stronger oil inflows. Analysts say the rise in reserves strengthens the CBN’s capacity to manage liquidity and curb speculative trading.
Standard Bank, in a recent note, lowered its year-end exchange rate forecast, projecting the naira at 1,458.8/$1 by December 2025 and 1,473/$1 by the end of 2026, citing improving FX fundamentals and policy coordination.
Meanwhile, inflation pressures appear to be easing. The National Bureau of Statistics is set to release September’s Consumer Price Index, with early forecasts suggesting a sixth straight month of decline, following August’s 20.12% reading—down from 21.88% in July. Economists attribute the trend to a firmer exchange rate, improved food supply, and stable energy prices, signalling cautious optimism for macroeconomic stability.
