The Nigerian naira remained stable against the British pound on Thursday, September 18, 2025, following the Bank of England’s decision to keep its interest rate unchanged. This steadiness helped the naira maintain its value in both official and parallel markets, reflecting Nigeria’s ongoing efforts to stabilize its currency.
In the official Investors and Exporters (I&E) window, overseen by the Central Bank of Nigeria (CBN), the naira closed at ₦2,035 per £1, slightly better than ₦2,041 earlier in the week on September 11, 2025.
On the parallel market, rates ranged between ₦2,200 and ₦2,210 per £1, with low trading volumes due to global uncertainties and seasonal factors. A Rivers trader noted the market’s cautious mood, driven by international monetary policy signals.
The Bank of England’s Monetary Policy Committee unanimously voted to hold the Bank Rate at 4% on September 18, 2025, after a 25-basis-point cut in August. Governor Andrew Bailey highlighted that future rate decisions would depend on economic data, citing persistent inflation in services and wages.
This contrasted with the U.S. Federal Reserve’s 25-basis-point cut to 4.5% on September 18, 2025, widening the GBP/USD rate to 1.3424, which indirectly supported the naira’s position against the pound.
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Nigeria’s economic context bolsters this stability. Since the CBN unified exchange rates in June 2023, the naira has faced challenges, depreciating over 50% against the pound in two years.
However, $4.3 billion in diaspora remittances in early 2025 and rising oil exports have provided support. With Nigeria’s inflation at 33.4% in August 2025, the CBN maintained its rate at 26.75% in July to manage pressures.
Looking forward, analysts expect naira stability if global commodity prices hold. The UK’s jobs report on September 24, 2025, may influence the BoE’s November meeting, with a 66% chance of another cut. For Nigeria, a stable pound aids predictability for non-oil exports like agriculture, reinforcing cautious optimism in currency markets.
