Naira Slips N9.88 Against Dollar Despite Rising External Reserves: Experts See Medium-Term Stability

The Nigerian naira fell by N9.88 against the US dollar at the official foreign exchange market on Wednesday, even as the country’s external reserves continued to climb. The Central Bank of Nigeria (CBN) reported that the naira depreciated by 0.7 percent, with the dollar quoted at N1,494.01, up from N1,484.13 the previous day at the Nigerian Foreign Exchange Market (NFEM).

In the parallel, or black market, the naira held steady at N1,525 per dollar, while Guaranty Trust Bank (GTBank) maintained its international transaction rate at N1,515 per dollar. Analysts note that the stability in the parallel market reflects a reduction in speculative trading, even as demand for the dollar remains robust.

Nigeria’s external reserves rose to $41.89 billion as of September 16, 2025, a 2.27 percent increase from $40.96 billion recorded on August 18, 2025. CBN officials attributed the growth to strong remittances and foreign portfolio investments, which have continued to support liquidity in the foreign exchange market.

At the last Monetary Policy Committee (MPC) meeting, member Aloysius Uche Ordu highlighted that while the naira’s performance has stabilized, foreign direct investment (FDI) remains low. Nigeria attracted only $1 billion in FDI in 2024, far behind countries like India and Brazil. Ordu emphasized that a coordinated government-wide strategy is needed to attract long-term investments that can drive economic growth and create jobs.

CBN Deputy Governor Emem Usoro noted that recent exchange rate movements indicate growing investor confidence. She cited higher foreign exchange turnover, reforms promoting transparency, and the strengthening of reserves as key factors supporting the naira’s medium-term stability, signaling cautious optimism for businesses and investors.

source: business day