The Nigerian economy achieved a significant milestone in 2025, with the stability of the foreign exchange market emerging as its most notable macroeconomic accomplishment. According to the Centre for the Promotion of Private Enterprise (CPPE), the country’s currency, the naira, remained relatively stable throughout the year, trading within the N1,440–N1,500 per United States dollar band.
Dr. Muda Yusuf, CEO of CPPE, highlighted this achievement in a review of the Nigerian economy in 2025 and outlook for 2026. The stability of the naira, with periodic marginal appreciation against the dollar, boosted investors’ and business confidence, eased imported inflation, and restored predictability to pricing, contracting, and investment planning. This, in turn, contributed to a decline in inflation, which dropped from 24.48 percent in January to 14.45 percent by November 2025.
The exchange rate stability had a positive impact on the economy, with the naira closing at N1,443.38 and N1,490 at official and black markets, respectively, before the Christmas holiday. This stability is a significant development, as it indicates a level of predictability and consistency in the country’s economic landscape.
The CPPE’s assessment of the Nigerian economy in 2025 underscores the importance of a stable foreign exchange market in promoting economic growth and development. A stable exchange rate can attract foreign investment, increase trade, and reduce inflation, ultimately leading to improved economic outcomes. As the country looks to 2026, maintaining this stability will be crucial in sustaining economic momentum and achieving long-term growth.
The decline in inflation, which was spurred by the stable currency, is also a notable achievement. With inflation under control, businesses and individuals can better plan for the future, and the overall economy can benefit from increased stability and predictability. As Nigeria continues to navigate its economic challenges, the stability of the foreign exchange market will remain a key factor in determining the country’s economic trajectory.