Top Nigerian Bank Predicts New Naira to Dollar Exchange Rate

FBNQuest Merchant Bank, a top Nigerian bank, has predicted a new Naira to Dollar exchange rate by the end of the year. The research investment bank analyst's outlook, titled "Steering Course: Volatility to Stability," highlighted the relative stability of the Naira throughout the year due to sustained CBN intervention and tight monetary policy.

The report noted that the Naira has traded within a narrow range since January, averaging a certain rate per dollar. FBNQuest projected a rise in the exchange rate by December 2025, driven by a low base effect from December 2024's Consumer Price Index surge.

The bank also predicts Nigeria will maintain recovery momentum in 2025, with growth led by the service sector, particularly financial services and ICT. This forecast aligns with the International Monetary Fund's recent upgrade of Nigeria's growth outlook.

Earlier reports from Comercio Partners also suggested a potential appreciation of the Naira in the foreign exchange market.