Nigeria’s currency began the week on a mild downward note as the naira slipped to N1,467 per dollar on Tuesday, compared to N1,460/$1 at Monday’s close. According to data from the Central Bank of Nigeria (CBN) tracked by Nairametrics, the naira had earlier recorded its best performance since 2024, closing at N1,458/$1 last Friday. The minor depreciation comes amid the CBN’s ongoing efforts to stabilize the foreign exchange market and sustain monetary gains achieved in recent months.
At the parallel market, traders reported the naira trading between N1,498 and N1,504/$1, reflecting persistent pressure on demand for foreign currency. Despite these fluctuations, market analysts maintain that short-term volatility is expected as the central bank continues implementing reforms aimed at improving liquidity and curbing speculative activities.
In a positive development, Nigeria’s foreign reserves rose to $42.6 billion on Tuesday, up from $42.5 billion the previous day, continuing a steady upward trend that began in July 2025. The CBN attributed the growth to improved inflows from oil exports and stronger external financing. Analysts say the consistent build-up in reserves enhances the apex bank’s capacity to defend the naira and maintain exchange rate stability. Standard Bank, in its revised outlook, projected that the naira could strengthen slightly to N1,458.8/$1 by the end of 2025 and N1,473/$1 by December 2026, citing improving FX reserves as a key support factor.
Meanwhile, inflation expectations for September remain upbeat. The Nairametrics Research Team projects that headline inflation may ease for the sixth consecutive month, supported by stable energy prices, improved food supply, and a relatively firm exchange rate. Analysts believe this would be a significant win for monetary authorities, who have pursued tighter policies and FX management reforms to restore macroeconomic balance.
Data from the National Bureau of Statistics (NBS) shows that inflation slowed to 20.12% in August 2025, down from 21.88% in July, marking the fifth straight month of decline. If September’s Consumer Price Index (CPI) confirms another drop, it would signal that Nigeria’s combination of fiscal discipline, monetary tightening, and forex reforms is gradually paying off—offering cautious optimism for consumers, businesses, and investors alike.
source: nairametrics