The Nigerian naira began the week on a mild depreciation, closing at ₦1,467.01 per US dollar on Tuesday, compared to ₦1,460/$1 recorded on Monday, according to data published by the Central Bank of Nigeria (CBN) and tracked by Nairametrics.
The local currency had ended last Friday at ₦1,458/$1, its strongest performance since 2024, reflecting the impact of ongoing monetary interventions by the CBN aimed at stabilizing the foreign exchange market. The currency opened the previous week at ₦1,464/$1 and later slipped to ₦1,472/$1 on Tuesday, indicating short-term fluctuations within a relatively stable trading range.
At the parallel market, traders quoted the naira between ₦1,498 and ₦1,504 per dollar, showing a moderate premium over the official rate.
Foreign Reserves Record Upward Momentum
Nigeria’s foreign reserves rose to $42.6 billion, up from $42.5 billion recorded the previous day, according to the latest figures from the CBN. The steady growth trend, which began in mid-July 2025, has been attributed to stronger oil export receipts and improved foreign inflows.
Economic analysts suggest that this consistent increase in reserves could enhance the apex bank’s capacity to defend the naira, manage speculative pressures, and sustain investor confidence.
In its most recent foreign exchange outlook, Standard Bank revised its projections downward, forecasting the naira at ₦1,458.8/$1 by December 2025 and ₦1,473/$1 by December 2026. The bank stated that stronger reserve buffers should “continue to support currency stability and allow the CBN to facilitate orderly exits for foreign investors when necessary.”
Inflation Outlook Remains Positive
Despite the minor dip in the exchange rate, Nigeria’s inflation outlook remains encouraging. Analysts project that headline inflation will continue its downward trajectory for the sixth consecutive month in September 2025, supported by a more stable exchange rate, improved food supply, and steady energy prices.
The Nairametrics Research Team noted that “with relative stability in both the FX and energy markets, September could mark another month of easing inflation, reinforcing the gains from ongoing monetary and fiscal coordination.”
According to the National Bureau of Statistics (NBS), the country’s headline inflation rate eased to 20.12% in August 2025, down from 21.88% in July, reflecting a slower pace of price increases.
If the trend continues, it would signal growing macroeconomic stability, validating the CBN’s mix of tighter monetary policy, exchange rate reforms, and fiscal discipline.
The NBS is expected to release its official Consumer Price Index (CPI) report for September 2025 on Wednesday.
✅ Key Takeaway:
While the naira experienced mild depreciation early in the week, rising foreign reserves and a steadily easing inflation rate indicate underlying economic resilience and improved policy effectiveness.
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