September 17, 2025
The Naira maintained an upside against the US dollar as the United States Central Bank makes an important interest decision later this Wednesday.
The U.S dollar dropped to N1,484.13 on Tuesday in the Nigerian official foreign exchange market, which was N13 higher than the N1,497.5/$ quoted on Monday.
However, the naira traded at the N1520/$-N1530/$ band at the physical black market in Nigeria’s business capital at the mid-week trading session.
Nigerian Banks’ naira debit card dealing with FX transactions had also led to a drop in FX demand, providing Naira bulls with enough potential to hold below the N1,500/$ support line.
The naira is experiencing a period of stability, one year after a precipitous decline against the dollar.
Naira rise might gain some momentum in the mid-term amid projected moderation in Nigeria’s inflation readings.
Nigeria’s inflation rate decreased for the fifth consecutive month, providing respite to consumers burdened by consistently high living expenses.
National Bureau of Statistics, NBS, data revealed that Nigeria’s inflation rate dropped to 20.12% in August.
READ MORE; Naira Trades below N1,500/$ First Time In Five Months
The average change in prices of goods and services is measured by the Consumer Price Index (CPI), which rose slightly from 125.9 points in July to 126.8 points in August.
NBS reported that, month-over-month inflation was 0.74%, significantly lower than the 1.99% recorded in July, indicating that price increases are slowing across Nigeria
“Compared to the headline inflation rate of 21.88 per cent in July 2025, the headline inflation rate dropped to 20.12 per cent in August 2025,” the agency said.
The major driver of inflation in Nigeria, food inflation, also decreased in August but stayed high. The index fell from 37.52 per cent in August 2024 to 21.87 per cent year over year. Food inflation decreased to 1.65 per cent monthly from 3.12 per cent in July.
