The Naira recorded modest gains on Tuesday, appreciating to N1,441 per US dollar following the conclusion of the Central Bank of Nigeria’s 303rd Monetary Policy Committee (MPC) meeting in Abuja.
This reflects an improvement from N1,452/$1 on Monday, according to updated figures published on the CBN’s website.
The currency’s appreciation comes as the apex bank continues its aggressive monetary tightening aimed at stabilizing the FX market and combating stubborn inflation.
During its two-day deliberation, the MPC voted to retain all key policy parameters, signalling a firm commitment to restoring macroeconomic stability. The Monetary Policy Rate (MPR) was held at 27 percent, its highest level in recent history. Other indicators also remained unchanged:
- Cash Reserve Ratio (CRR): 45% for Deposit Money Banks, 16% for Merchant Banks
- Liquidity Ratio: 30%
- Asymmetric Corridor: +50/-450 basis points around the MPR
CBN Governor Olayemi Cardoso said maintaining a tight monetary stance was necessary to consolidate gains in the foreign exchange market. He added that the policy environment is designed to attract foreign inflows, enhance transparency, and support broader economic reforms.
Financial projections also point to cautious optimism. Standard Bank forecasts that the Naira could close at N1,458.8/$1 by December 2025, buoyed by stronger FX reserves, improved market liquidity, and rising investor confidence. The bank noted that since September 15, the Naira has consistently traded below N1,500 amid sustained CBN intervention.
The bank had earlier projected the currency would end 2025 at N1,585.5/$1, down from a previous estimate of N1,697.5/$1—though it warned that political activities and fiscal pressures ahead of the 2027 elections could weigh on the Naira.
In his December 2024 budget presentation, President Bola Tinubu projected that inflation would fall from 34.6% to 15% in 2025, while the exchange rate would strengthen from about N1,700/$1 to N1,500/$1.