The Naira continued its downward trend this week and currently trades at N1,555/$1 on the parallel market on Wednesday, according to Naijaonpoint market survey in Lagos.
The data shows the naira depreciated from N1550/$1, which it traded on Monday and Tuesday in the black market.
This is coming just days before the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting.
In the official market, data from the Central Bank of Nigeria (CBN) shows the naira closed at N1,528.65/$1 on Monday, marking a slight appreciation from N1,532/$1 recorded earlier.
As of the time of filing this report—12:14 p.m. on Wednesday—closing data for Tuesday had not yet been published on the CBN’s website.
Intra-day trading on Monday highlighted continued volatility, with the naira fluctuating between a high of N1,532/$1 and a low of N1,515/$1.
All eyes are now on the Central Bank of Nigeria’s Monetary Policy Committee (MPC), which is set to hold its 301st meeting from July 21 to 22, 2025. Industry analysts expect a cautious but firm stance in response to current economic conditions.
Analysts suggest that the July meeting may lead to a policy shift, depending on recent macroeconomic indicators, including inflation levels, foreign exchange stability, and GDP growth forecasts.
The MPC’s decisions are closely watched for their impact on borrowing costs, investment flows, and Nigeria’s overall economic outlook.
Whether the Bank chooses to maintain, hike, or reduce rates will send critical signals to both local and international stakeholders.
The National Bureau of Statistics (NBS) is yet to release its June 2025 Consumer Price Index (CPI) report. Ahead of the official release by the NBS, analysts expect Nigeria’s headline inflation to post a marginal decline in June 2025, following a print of 22.97% in May.
Most projections place June inflation between 22.0% and 22.8%, driven by base effects, relative foreign exchange (FX) stability, and seasonal food supply adjustments.
According to the Managing Director of Optimus by Afrinvest, Ebo Ayodeji, June inflation is likely to ease further on the back of a stable naira and relatively contained energy prices.
“We anticipate a further decline in headline inflation in June 2025, largely due to continued FX stability and minimal volatility in energy prices,” he noted. “However, food inflation remains a concern due to heightened insecurity in key food-producing areas like Benue State.”
Managing Director of Rostrum Investment & Securities Ltd, Olaitan Sunday, projects inflation to ease slightly to 22.4%–22.8%, citing a mix of statistical and policy-driven factors.
“Although structural challenges like insecurity and high transport costs remain, we believe inflation will decline modestly due to FX gains, seasonal harvests, and reduced consumer spending,” Sunday concluded.
“Although structural challenges like insecurity and high transport costs remain, we believe inflation will decline modestly due to FX gains, seasonal harvests, and reduced consumer spending,” Sunday concluded.
An executive banker, Onche Samuel, shares a more optimistic projection, expecting headline inflation to drop to approximately 22.0% in June. He attributes this to tighter monetary conditions and improvements in core inflation indicators.
“The Central Bank’s sustained tight monetary policy, evident in elevated yields on treasury instruments, and the marginal appreciation of the naira at the NAFEM window helped suppress core inflation, especially in pharmaceuticals and logistics,” Samuel said.
CBN has announced that the 301st meeting of the Monetary Policy Committee (MPC), the country’s apex decision-making body on interest rate policy, will be held on Monday, July 21, and Tuesday, July 22, 2025, at its headquarters in Abuja.
At the 300th MPC meeting held in May 2025, the CBN opted to maintain a conservative stance, keeping the Monetary Policy Rate (MPR) unchanged at 27.5%.
The decision underlines the Bank’s commitment to balancing price stability with gradual economic recovery.
Other key resolutions from the May meeting included:
The vote was unanimous, with all 12 MPC members supporting the retention of existing rates, citing the need to monitor the effectiveness of current policies before making further adjustments.