Naira Appreciates as Nigerian Billionaire Predicts New Dollar Exchange Rate by December
- Nigerian currency has appreciated against the United dollar in unofficial foreign exchange market
- "Data shows that the latest exchange rate of the naira against the dollar in the black market is the highest in 15 months
- BUA chairman and second richest man in Nigeria, Abdulsamad Rabiu has shared the exchange rate he expects by year-end
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The naira strengthened slightly on Wednesday, September 24, gaining 36 kobo or 0.02% against the United States dollar in the Nigerian Foreign Exchange Market (NFEM).
It closed at N1,488.56/$1, compared with Tuesday’s rate of N1,488.92/$1.
Source: Getty Images
The naira also appreciated against other major currencies in the same window. It gained N10.29 against the pound sterling to close at N2,001.08/£1, up from N2,011.37/£1 the previous day.
While against the euro, it improved by N7.07, settling at N1,747.28/€1 compared with Tuesday’s N1,754.35/€1.
Black market performance
In the parallel market, the naira appreciated to N1,490 per dollar, the highestin 15-month.
Compared to the previous trading session, the local currency gained N25 or 1.67%, appreciating from N1,515 per dollar on Tuesday.
With the current FX level, the gap between the official and black-market exchange rates has narrowed to N1.44.
Snapshot of latest exchange rate
- CFA: ₦2.67
- Yuan/Renminbi: ₦208.79
- Danish Krona: ₦234.06
- Euro: ₦1,747.28
- Yen: ₦10.01
- Riyal: ₦396.83
- South African Rand: ₦85.88
- SDR: ₦2,045.14
- Swiss Franc: ₦1,873.11
- Pounds Sterling: ₦2,001.08
Source: Getty Images
CBN support and FX stability
The midweek strengthening of the naira is linked to continued support from the Central Bank of Nigeria (CBN), which has maintained interventions and policy measures to keep the local unit within the expected range of N1,480 to N1,550 per dollar.
Monetary policy rate cut
At its 302nd Monetary Policy Committee (MPC) meeting on Tuesday, the CBN cut Nigeria’s benchmark interest rate by 50 basis points to 27.00% from 27.50%. It was the first rate reduction since 2020, following three consecutive pauses and six straight hikes through 2024.
External reserves peak
CBN Governor Yemi Cardoso also disclosed that Nigeria’s external reserves had risen significantly, reaching $43 billion this month — the highest level in recent years.
Analysts at Comercio Partners observed that the immediate impact of the rate cut is likely to be contained, with limited volatility expected in the near term, BusinessDay reports.
They noted that the naira has traded within a relatively narrow band of N1,500–N1,600 per dollar in recent months, supported by consistent CBN interventions, improved external reserves, and closer monitoring of FX flows.
BUA chairman predicts stronger naira
Earlier, Legit.ng reported that Abdul Samad Rabiu, Chairman of BUA Group, has expressed optimism about the Nigerian naira’s trajectory, forecasting that the exchange rate could strengthen to between N1,300 and N1,400 per US dollar by December 2025.
Rabiu made the comments on Wednesday, September 24, after a meeting with President Bola Tinubu at the State House in Abuja.
Rabiu praised the current forex regime as more transparent and supportive of economic stability and business growth.
Source: Legit.ng
