Experts Say the Naira Might Rise to N1,400 Before December

Economic experts believe the naira could strengthen to around N1,400 per dollar before the end of 2025. Their optimism is based on two key factors, falling inflation and rising foreign reserves.

A new report from CardinalStone Research says the naira is expected to end the year between N1,400 and N1,450 per dollar. The firm explained that as inflation continues to fall, the naira will gain more strength against the dollar.

According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate dropped to 18.02% in September 2025, from 20.12% in August. This is the lowest inflation rate in three years and marks six straight months of decline.

Falling Inflation to Help the Naira

CardinalStone noted that the drop in inflation, together with rising external reserves and a current account surplus, will help the naira recover. 

The firm also expects the Central Bank of Nigeria (CBN) to cut interest rates in November, reducing the Monetary Policy Rate (MPR) to 26%.

The report added that lower inflation and interest rates could boost business confidence and attract more foreign investment.

More Firms Share the Same View

United Capital also predicted that inflation will keep falling and may close the year slightly above the government’s 15% target. The firm expects an average inflation rate of 16.07% for the last quarter of 2025, assuming there are no major economic shocks.

Coronation Asset Management agreed that inflation is easing but noted that while food prices are dropping fast, other costs like services remain high.

Naira Still Under Pressure and Foreign Reserves Are Growing

Despite the positive outlook, the naira is still facing pressure in the market. On October 17, 2025, it traded at N1,475 per dollar officially and N1,484 per dollar in the parallel market, showing that demand for dollars is still strong.

Nigeria’s foreign exchange reserves have risen to $42.668 billion as of October 18, 2025. This increase is driven by better oil sales, higher non-oil inflows, and a strong trade balance.

The CBN also announced that the country’s monthly foreign exchange turnover now stands at $8.6 billion, the highest in recent years.