Naira hits five-month high at N1,497/$ 

Analysts attribute the naira’s gains to both domestic and global factors, including a softer US dollar in international markets.

On the global stage, the US Dollar Index (DXY), which tracks the greenback against six major currencies, fell to 97 points on Tuesday, extending its losing streak to a second consecutive session.

The Euro, Swiss franc, and Japanese yen led the charge, making the dollar the weakest currency in the G10 forex basket. Gold, meanwhile, surged to a record high above $3,680, fueled by the dollar’s decline and expectations of a US Federal Reserve rate cut this week.

At home, optimism about the naira’s outlook was reinforced by comments from Professor Murtala Sagagi, a member of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC).
Speaking at the MPC’s July meeting—whose communiqué was published on September 12—Sagagi projected that the naira could strengthen further to around N1,400/$ before the end of 2025.

“With the recent increase in daily crude oil production, new inflows of capital, and an improved balance of payments, it is likely that the naira will continue to appreciate, potentially reaching the projected N1,400 per dollar before the end of the year,” Sagagi said.

He stressed that sustaining the momentum would require continued efforts to curb inflation and maintain monetary discipline by the CBN.

Nigeria has recently recorded higher crude oil production levels, steady inflows of foreign investment, and improvements in the balance of payments, which together have helped reduce speculative pressures on the naira.

Market watchers believe the interplay between domestic reforms and global macroeconomic trends will shape the local currency’s trajectory in the coming months.

The weakening US dollar, coupled with improving investor confidence in Nigeria, could further bolster the naira if positive conditions persist.