The naira broke the N1,450/$ resistance line at the official market and the 1490/$ resistance line at the unofficial market, despite recent gains seen in the U.S dollar index.
The naira’s value increased to N1,447 per dollar at the Nigerian Foreign Exchange Market (NFEM), while it traded at N1487/$ at the black market.CBN released data indicated that the naira appreciated by N5 points while the exchange rate dropped to N1,447 per dollar from N1,452 per dollar on Monday.
Africa’s richest man bullish on naira
The founder of the Dangote Group and Africa’s richest man, Aliko Dangote, advised Nigerian dollar holders to sell their US dollars immediately rather than keep them. He made this statement at a global press conference in Lagos, where he announced plans to expand his $20 billion Dangote Petroleum Refinery.
He based his advice on the expectation that the refinery’s expanding operations, supportive government policies, and the resulting improvements in Nigeria’s trade balance and foreign reserves will all help the Naira continue to appreciate against the dollar. This advice aligns with the recent strengthening of the Naira, partly due to the refinery’s impact on reducing reliance on fuel imports.
The Naira appreciated from about N1,475/$1 earlier in October to N1,447/$1 at the end of October 2025. With a capacity of 650,000 barrels per day (bpd), the Dangote Refinery is Africa’s largest. It began full operations in early 2025 and is currently producing jet fuel, diesel, and gasoline.
Dangote Refinery started full operations in early 2025 and can currently produce 650,000 barrels per day (bpd) of gasoline, diesel, and jet fuel. With plans to increase capacity to 1.4 million barrels per day, Dangote may become the world’s largest single-train refinery.
U.S dollar stops bleeding ahead of Fed Meeting
The US Dollar Index (DXY), which compares the value of the US dollar (USD) to six major currencies, is rising after two days of decline. It is currently trading at 90. Due to traders’ expectations that the Federal Reserve (Fed) will lower interest rates later in the North American session, the greenback may face difficulties. It is generally anticipated that the Fed will cut interest rates by an additional quarter point at its October meeting, bringing the benchmark rate down to 3.75-4 percent.
According to the CME FedWatch Tool, markets are fully priced in for a rate cut by the Fed in October, with a 91 percent chance of another one in December.
Currency traders will be watching for clues about the pace of future easing in Fed Chair Jerome Powell’s speech at the post-meeting conference. The Fed may lower interest rates further, according to the October CNBC Fed Survey, over the next two meetings.
US President Donald Trump announced in South Korea that the Federal Reserve would not raise interest rates. Trump forecasted that by the end of his second term, the US could attract investments ranging from $21 trillion to $22 trillion.
He also projected 4 percent GDP growth in the upcoming quarter, highlighting the expansion of the nation’s factories. Additionally, President Trump mentioned that Chinese President Xi is set to arrive tomorrow and expressed hope that the meeting will result in a “great deal” for both China and the United States.
The US dollar might gain more support if the two leaders agree on a framework that ends further US tariffs and China’s restrictions on rare earth exports. Meanwhile, the fifth week of the ongoing US government shutdown has delayed the release of key economic data that are crucial for guiding monetary policy and shaping market expectations.
