Naira Set to Depreciate to N1,804 per Dollar in 2025, Warns Report”
The Nigerian Naira is projected to weaken further in 2025, with a fair value forecast of N1,804 per dollar in the official market. This projection comes from a recent report by Afrinvest titled “Beyond The Rhetorics: Transforming Reforms to Tangibles.”
The report suggests that the Central Bank of Nigeria (CBN) may face challenges in meeting the growing foreign exchange demands and dealing with expected volatility in the forex market over the coming months. Afrinvest points out that exchange rate instability is likely to continue, albeit at a more gradual pace.
“Our outlook is based on the assumption that the CBN will struggle to sustain market supply. Recent increases in foreign exchange reserves were largely driven by sources with stringent usage conditions, limiting their long-term impact,” the report reads.
This projection contrasts with the N1,500 per dollar target set in the 2025 national budget, as presented to the National Assembly.
As of Friday, December 29, 2024, the Naira stood at N1,534 per dollar in the official market, while the black market rate hovered around N1,650 per dollar. The fluctuations in the Naira’s value have been a consistent trend throughout 2024. However, the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in October has provided some relief, offering relative stability in the market.
This forecast highlights ongoing challenges for the Nigerian economy and underscores the need for strategic measures to address the persistent exchange rate pressures in the months ahead.
Stay tuned to NIGPOST for more updates on this evolving situation.
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