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- A CBN MPC member has projected that the naira could appreciate to around N1,400/$ by year-end, driven by higher oil production and capital inflows
- Another member of the committee noted reduced speculation in the forex market and stable exchange rates, supported by rising external reserves
- The MPC reaffirmed its commitment to a tight monetary policy, maintaining the interest rate at 27.5% to combat inflation and ensure economic stability
Legit.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology, Banking and the Economy.
A member of the Central Bank of Nigeria’s Monetary Policy Committee (MPC), Professor Murtala Sagagi, has expressed optimism that the naira will continue its upward trend and may appreciate to around N1,400 against the US dollar by the end of 2025.
Source: UGC
Sagagi based his forecast on several positive developments, including a recent rise in daily crude oil output, increased foreign capital inflows, and an improved balance of payments.
His comments were made in his personal statement during the MPC’s July meeting, details of which were released by the Central Bank on Friday, September 12.
Sagagi stated:
“With the recent increase in daily crude oil production, new inflows of capital and improved balance of payment, the naira is likely to keep appreciating to reach the projected N1400/$1 before the end of the year.”
According to ThisDay, Sagagi highlighted the role of easing inflation, the CBN’s continued efforts to unify the foreign exchange market, and disciplined liquidity management.
These, he said, should be leveraged to accelerate economic growth and improve citizens’ welfare.
Reflecting on the broader reform efforts, he acknowledged that previous structural changes over the past three decades have struggled to eliminate long-standing inefficiencies in Nigeria’s economy.
However, he noted that since mid-2023, the government’s structural reforms have focused more deliberately on boosting economic diversification and improving living standards.
Another MPC member, Bala Moh’d Bello, echoed similar sentiments regarding exchange rate stability.
In his own statement, Bello emphasised that speculative activity in the foreign exchange market has subsided significantly.
Bello noted:
“The naira exchange rate has remained relatively stable, reflecting the benefits of tighter liquidity conditions, increased investor confidence, and the effective implementation of recent adjustments to the forex management framework.”
Bello further pointed out that reduced speculation has enhanced transparency and allowed for better market-driven pricing.
He added that Nigeria’s external reserves stood at $40.11 billion as of July 18, 2025, enough to cover roughly 9.5 months of imports, a key factor supporting ongoing currency stability.
Source: UGC
Meanwhile, MPC members reaffirmed their commitment to maintaining high interest rates as a strategy to stabilise prices and protect the naira.
At their last meeting, the committee unanimously agreed to hold the Monetary Policy Rate (MPR) steady at 27.5%, citing continued inflationary challenges and global economic uncertainties.
Nigeria’s foreign reserves reach four-year peak
In related news, Legit.ng reported that Nigeria’s foreign exchange reserves climbed to its highest point in almost four years, buoyed by recent reforms introduced by the CBN.
The development is seen as a positive signal for the naira, which has faced sustained pressure in the foreign exchange market.
With stronger reserves, the CBN is now better positioned to stabilise the local currency and intervene more effectively in defending its value.
Source: Legit.ng
