- Standard Bank has revised its projection for the naira exchange rate against the US dollar by December 2026
- The bank said the new projection is supported by stronger forex reserves and increased investor confidence
- The naira in the last few days has cooled off its appreciation in the official and unofficial FX markets
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Leading financial institution, Standard Bank, has projected that the naira will appreciate to N1,458.8 against the US dollar by December 2025.
This is an improvement from its earlier forecast of N1,585.5/$1 in September 2025 and also N1,697.5/$1 earlier in the year.
In its latest report, the bank also looked beyond 2025 and projected that by December 2026, the naira would weaken slightly to N1,473.
Source: Getty Images
Standard Bank admit that the naira has exceeded its earlier forecast, with the naira trading below N1,500 to the dollar amid the Central Bank of Nigeria’s (CBN) efforts to stabilise the FX market.
The bank said:
“While the risks remain evident, we now again lower our year-end FX forecasts. We see the naira at 1,458.8 against the dollar by this year-end and 1,473.0 by December 2026.”
The performance of the naira is supported by stronger foreign exchange (FX) reserves, improved banking system liquidity, and renewed investor confidence in naira assets.
Standard Bank further projected that NNPCL inflows could reach $1 billion monthly once the government completes the repayment of outstanding fuel subsidy arrears.
The report added.
“This should continue to support gross FX reserves, thereby increasing the CBN’s ability to support the currency and ensure orderly exits whenever foreign investors exit the market.”
Source: Getty Images
Naira depreciates against dollar
The value of the naira depreciated against the US dollar at the official foreign exchange market to start the new week on a bearish note.
Data obtained from the CBN showed that the naira closed at N1,457.51/$1 on Monday, down from N1,455.17/$1 recorded last Friday.
Monday’s rate represents a N2.34 depreciation compared to the previous trading day.
Meanwhile, at the black market, the naira remained stable at N1,503/$1 on Monday, the same rate as last week.
The development comes despite the country’s external reserves holding steady at $42.59 billion as of October 10, 2025.
Dollar inflow into NFEM falls
Earlier, Legit.ng reported that the Nigerian currency is walking a tightrope once again as US dollar inflows into the Nigerian Foreign Exchange Market (NFEM) fell by 5.7% in September to $3.18 billion, down from $3.37 billion in August 2025.
Data cited by Cordros Capital Limited revealed that, while foreign investments in equities and bonds remained strong, the overall decline was largely driven by weaker inflows from local sources.
Figures from FMDQ showed a significant drop in local inflows. down 32.4% month-on-month to $1.42 billion, compared to $2.10 billion in August.
Source: Legit.ng
