CBN's MPC Member Projects New Naira to Dollar Exchange Rate

• A member of the CBN's Monetary Policy Committee (MPC) has forecast that the naira will end 2025 below N1,500/$
• He explained that the efforts of monetary and fiscal authorities will help stabilise the value of the Nigerian currency in the foreign exchange markets
• In recent weeks, the naira has remained strong across all markets, with both the official and black market rates converging at around N1,500 per dollar

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Murtala Sagagi, a member of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC), has projected that the naira would appreciate to N1,450 per US dollar by the end of 2025.

He stated this in a communique released on the Central Bank of Nigeria’s website for the MPC’s May 20 meeting.

The CBN releases full presentations from previous MPC meetings on its website.

According to Sagagi, Nigerian currency, the naira, is expected to sustain its positive trajectory through 2025.

He said the positive sentiments are due to efforts from monetary and fiscal authorities to stabilise the currency.

His words:

“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."

The next policy-setting meeting, the 301st, will be held on Monday and Tuesday in Abuja, where the MPC is expected to decide on the benchmark interest rate.

Naira's performance in recent weeks

So far in 2025, the naira has shown relative stability despite global uncertainties and fluctuating oil prices, Nigeria’s major source of foreign exchange.

Brent crude, which underpins the country's oil revenue projections, has largely traded below the government’s budget benchmark of $75 per barrel.

The naira hit a four-month high of N1,518 per dollar last Wednesday, July 16.

However, it depreciated slightly to close the week on Friday, July 1,8 at N1,532 a dollar.

Similarly, analysts at Lagos-based consultancy Cordros said they “anticipate that the naira will remain stable in the near term” in the absence of significant external shocks.

Cordros analysts noted"

“We expect FX liquidity to remain robust, supported by reduced global pressures and stronger market confidence, which continues to attract inflows from foreign portfolio investors (FPIs),”

Naira to dollar exchange rate gap in official, black market closes

Earlier, Legit.ng reported that Nigerian currency continued its strong performance against the US dollar in the parallel market, commonly referred to as the black market, narrowing the exchange rate disparity between official and unofficial markets.

On Wednesday, July 16, the naira closed at N1,535 per dollar in the parallel market, marking a gain of N8 or 0.5% from its previous rate of N1,545 before Monday's national holiday declared to mourn former President Muhammadu Buhari.

The Central Bank of Nigeria has defended the naira in the foreign exchange market during the first half of 2025.

Source: Legit.ng