The Nigerian naira weakened sharply against the US dollar on Tuesday, September 23, 2025, trading at N1,493 per dollar. This marked a 0.27% drop from the previous day’s rate of N1,489/$ at the Investors and Exporters (I&E) window.
The decline followed the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting, which ended on September 23, 2025. The committee opted to keep the benchmark interest rate steady at 26.75%, defying expectations from some analysts for a hike to combat inflation.
Before the announcement, the naira had strengthened slightly to N1,482/$ on September 22, 2025. Post-decision, it slid as traders reacted to the unchanged policy. Trading volume rose to $185.2 million, up from $112.3 million the prior day.
CBN Governor Olayemi Cardoso explained the decision during a post-meeting briefing. “We believe the current rate is appropriate given recent economic data,” Cardoso said. He highlighted easing inflation and stabilizing foreign reserves, now at $34.2 billion as of September 20, 2025.
Market observers pointed to persistent dollar shortages and seasonal demands as key pressures. Despite the CBN’s interventions, including $200 million in forex sales last week, the naira faces headwinds from high import costs.
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In the parallel market, the currency fared worse, closing at N1,510/$ on September 23, 2025, compared to N1,505/$ earlier. This gap underscores ongoing liquidity challenges in Nigeria’s forex market.
The MPC also maintained the Cash Reserve Ratio at 45% and the asymmetric corridor at +500/-100 basis points around the policy rate. Cardoso assured that the bank would monitor inflation, projected at 22.6% for August 2025.
Economists warn that without bolder actions, the naira could test N1,500/$ soon. The development raises concerns for importers and households amid rising living costs.
Nigeria’s economy grew 3.19% in Q2 2025, but currency volatility threatens gains. Stakeholders urge the CBN to boost reserves through oil revenues.
