Analysts Project Naira Stability Amid Dollar Demand Surge

Analysts predict that the naira will trade within a range of N1,290 to N1,370 per dollar throughout October 2026. This projection is influenced by easing inflation, robust foreign exchange reserves, and seasonal demand for imported goods, particularly as businesses prepare for the Christmas and New Year festivities.

Financial analyst Olumide Adesina stated that the naira's exchange rate is expected to remain stable within this range due to the Central Bank of Nigeria's (CBN) decision to set the Monetary Policy Rate (MPR) at 23 per cent. The anticipated increase in demand for foreign currency from businesses replenishing inventories and purchasing raw materials could exert pressure on the naira.

Biodun Odunuga, an analyst with Capital Trust in Lagos, emphasized that the naira's performance will depend on the balance between foreign currency inflows from oil exports and investment, and the demand from importers, manufacturers, and consumers.