In 2025, the Nigerian economy reached a significant milestone: the foreign‑exchange market achieved notable stability. The Centre for the Promotion of Private Enterprise (CPPE) reported that the naira traded within a narrow band of N1,440–N1,500 per US dollar throughout the year. Dr. Muda Yusuf, CPPE’s CEO, highlighted this achievement in his review of the 2025 economy and outlook for 2026.
The relative steadiness of the naira, with occasional marginal appreciation against the dollar, bolstered investor and business confidence, eased imported inflation, and restored predictability to pricing, contracting, and investment planning. Consequently, inflation fell from 24.48 % in January to 14.45 % by November 2025. Near the Christmas holiday, the exchange rate stood at N1,443.38 in the official market and N1,490 in the black market, underscoring the newfound consistency in Nigeria’s economic landscape.
CPPE’s assessment emphasizes that a stable foreign‑exchange market is crucial for economic growth. Predictable exchange rates attract foreign investment, stimulate trade, and help contain inflation, leading to better overall outcomes. As Nigeria looks ahead to 2026, preserving this stability will be essential for sustaining momentum and achieving long‑term growth. The decline in inflation, driven by the stable currency, further enables businesses and individuals to plan more effectively, enhancing overall economic stability and predictability.
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