The Nigerian Naira is anticipated to depreciate to N1,804 per dollar fair value at the official market in 2025, as stated in a recent report by Afrinvest titled ‘Beyond The Rhetorics: Transforming Reforms to Tangibles’.
The report attributes this projection to the potential challenges the Central Bank of Nigeria might face in meeting foreign exchange demands and managing expected FX volatility in the upcoming months.
According to the report, exchange rate fluctuations are expected to persist in 2025, albeit at a relatively moderate pace. The belief is that the CBN may struggle to consistently meet market demands due to limitations, as recent FX reserves growth was primarily fueled by inflows from sources with restrictive conditions on usability.
This projection contrasts with the N1,500 per dollar benchmark suggested in the 2025 budget proposal presented to the National Assembly. Recent reports indicated that the Naira closed at N1,534 per dollar at the official market and N1,650 at the black market. Despite ongoing fluctuations in the Naira’s value throughout 2024, the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in October has led to some degree of stability.
The predictions regarding the Naira’s potential depreciation emphasize the importance of monitoring economic conditions and exchange rate policies to mitigate potential impacts on businesses, consumers, and the overall financial market.
Hannah Afolabi, (Hannie), is a talented chef and the CEO of Hannie’s Kitchen. Currently serving as a News Editor for DNewsinfo, Hannah combines a passion for food and journalism. With a unique blend of skills in both culinary arts and journalism, Hannah is dedicated to making an impact in every endeavor.
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