The naira weakened further on Tuesday, closing at N1,493.2 per dollar in the official market, following the conclusion of the 302nd Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN).
According to data published on the CBN website on Tuesday, the latest figure represents a slight depreciation from N1,491.49/$1 on Monday and N1,488/$1 on Friday.
In the parallel market, the naira also slipped, exchanging at N1,521.5/$1 on Tuesday, compared to N1,518/$1 on Monday, widening the gap between official and black-market rates.
This is according to data provided by market sources at Wuse Zone 4 in Abuja.
External reserves hit $42 billion
Nigeria’s external reserves climbed to $42.03 billion, marking the highest level since late September 2019 and setting a six-year (72-month) peak.
The latest data from CBN show reserves at $42.03 billion, up from $41.99 billion the previous day and well above $41.42 billion at the start of September.
Nairametrics observed that the buildup is not a one-off spike. Throughout September, every recorded session has shown an increase, delivering 13 consecutive daily gains across 14 reporting days.
MPC cuts MPR to 27%
On Tuesday, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5 per cent to 27 per cent.
The decision was announced by CBN Governor, Olayemi Cardoso, during the post-MPC press briefing on Tuesday, following the Committee’s 302nd meeting in Abuja.
Alongside the MPR cut, the MPC narrowed the asymmetric corridor around the benchmark rate to +250 and -250 basis points, from the previous +500/-100 basis points.
Cardoso explained that the adjustment reflects the Committee’s cautious attempt to ease monetary conditions in response to signs of moderating inflation and improving macroeconomic fundamentals.
These measures, the CBN said, were carefully balanced to sustain ongoing disinflation efforts while ensuring the banking sector has adequate liquidity to support credit expansion and economic growth.
What you should know
Nigeria’s economy grew by 4.23 percent in real terms in the second quarter of 2025, driven by strong performance in both oil and non-oil sectors, according to the National Bureau of Statistics (NBS).
Analysts have earlier called on the CBN to adopt more flexible monetary policies that will stimulate credit flow into the economy, especially for small and medium enterprises (SMEs) and critical sectors.
The Centre for the Promotion of Private Enterprise (CPPE) hailed CBN’s latest monetary policy actions as a “strategic and well-timed” shift from economic stabilization to growth acceleration.
A statement by Dr. Muda Yusuf, CEO of CPPE, noted that if sustained and complemented by fiscal and structural reforms, the move could unlock significant opportunities for investment, job creation, and inclusive economic expansion.
