December 5, 2025
During the mid-week trading session, the British Pound marginally depreciated toward the N1,935 support level at the official market and N1,950 at the unofficial market.
Data from CBN on Wednesday showed that it settled at N1,931 with intraday trading fluctuating between N1,924 and N1,933 against the British Pound.
Influenced by retail demand and liquidity, foreign exchange rates traded slightly higher at the unofficial market, around N1,950/£.
Increased holiday demand for foreign currency in Nigeria, are expected to exert modest upward pressure on the British pound and naira soon, this may drive rates toward N1,950–1,975/£ by the end of the month for imports, travel, and tuition payments.
READ MORE; British Pound Remains Strong At $1.34
Analysts forecast an average rate of about N1,949–N2,021/£ regarding the British pound sterling, with potential highs above N2,000/£ if pressures on the Nigerian naira persist, caused by limited FX inflows or import surges.
Some models suggest a bullish Pound Sterling could weaken by 20 per cent to about 2,300/£, but baseline projections indicate that the GBP will gradually strengthen given the UK’s growth prospects.
Nevertheless, the fundamentals of the Nigerian currency show some promising long-term prospects after Nigeria’s export industry demonstrated encouraging growth in 2024, with total exports expressed in naira rising to N77.4 trillion from N36 trillion in 2023.
The growth highlights the nation’s resilience and potential to increase trade throughout Africa and beyond, even though difficulties still exist in key international markets.
Non-oil sectors are showing impressive gains that could eventually improve Nigeria’s standing in international trade, according to data from the International Trade Centre, ITC, while dollar-denominated export earnings decreased slightly to $57.9 billion from $60.65 billion in 2023.
READ MORE; British Pound Falls As UK Budget Deficit Rises
One credible drive was cocoa exports, which increased dramatically from $759 million in 2023 to $2.6 billion in 2024.
Nigeria’s ability to diversify its export base beyond crude oil is demonstrated by the notable increase in ores and residues, which reached $824.4 million.
However, the British Pound has shown resilience in recent weeks, bolstered by a favorable UK budget announcement and diverging monetary policy expectations between the Bank of England and the US Federal Reserve.
The British pound trades at approximately 1.333 against the U.S dollar, marking a 1.46% gain over the past month, this follows a strong weekly performance, with sterling posting its best week in over three months amid a weaker US Dollar.
The upcoming Bank of England, BoE, and Fed decisions could introduce volatility, with markets pricing in a 25-basis-point BoE cut this month while the Fed’s easing path appears more aggressive.
