The Naira is projected to appreciate to N1,450/$1 by the end of the year, strengthening from its current rate of N1,535.50/$1, amid improvements in fiscal and monetary conditions.
This is according to a member of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee, Murtala Sagagi.
In his personal statement made after the 300th MPC meeting published on the CBN website on Friday, Sagagi stated, “The value of the naira has been relatively stable even though it is still considered undervalued. It is projected that the naira would appreciate to N1,450 per US dollar by the end of 2025.”
He added that recent assessments of the Nigerian economy by international rating agencies such as JP Morgan and Fitch Ratings have been positive, reinforcing investor confidence and supporting the outlook for improved currency performance.
Further noting the economy’s positive outlook, he noted “The renewed confidence in the country, when backed by coherent monetary-fiscal coordinated responses, is likely to further insulate the economy from shocks and lay solid foundation for stability and sustainable inclusive growth.”
Sagagi, however, emphasized the need for complementary fiscal policy actions to ensure that improvements in inflation translate into measurable gains in economic growth and employment.
“There is an urgent need to look inward to generate a stable and inclusive economy,” he said.
Reforms working, but risks remain
Another MPC member, Mustapha Akinkunmi, also noted progress in exchange rate reforms and monetary tightening introduced by the CBN in 2024.
Akinkunmi stated, “The CBN’s exchange rate reforms and monetary policy adjustments in 2024 have contributed to greater currency stability, eased inflationary pressures, and fostered a more predictable business environment. However, these improvements come with notable risks.”
What you should know
The currency has lost about 70% of its value against the dollar since President Bola Tinubu relaxed exchange controls in 2023 to lure external investors and end a dollar shortage, as part of wider fiscal and monetary reforms to revamp the economy.
- The naira is showing signs of stabilization after global trade tensions triggered volatility in the first half.
- On Friday, the currency traded at N1,535 to the dollar in the parallel (black) market, just N1 less than the N1,536/$1 rate recorded at the official market.
- Data on the CBN website shows the naira closed at N1,536/$1 on Thursday, a depreciation from N1,531/$1 on Wednesday.
- President Tinubu, in December 2024, stated that the Federal Government aims to stabilise the exchange rate at N1,500 to the dollar by the end of 2025 to ensure the smooth implementation of the budget.
CBN has announced that the 301st meeting of the Monetary Policy Committee (MPC), the country’s apex decision-making body on interest rate policy, will be held on Monday, July 21, and Tuesday, July 22, 2025, at its headquarters in Abuja.
