The Nigerian naira is expected to maintain stability against the U.S. dollar in the coming week, supported by ongoing interventions from the Central Bank of Nigeria (CBN), traders have said, as attention turns to year-end foreign exchange activity across Africa.
On Thursday, the naira was quoted at 1,445 to the dollar on the official market, slightly firmer than 1,447 a week earlier. In parallel, street trading reflected a rate of 1,475 to the dollar. Analysts expect the naira to trade within a narrow band of 1,443 to 1,450 in the coming week, indicating limited volatility.
“I don’t expect any drastic move from where it is,” a Lagos-based trader said. “We have seen steady demand, but the central bank has been intervening effectively to maintain stability.”
Regional Comparison
While Nigeria’s currency remains stable, the outlook for other major African currencies is mixed. Ghana’s cedi is expected to hold steady at around 11.35 to the dollar as year-end activity slows, giving the currency a brief respite from high dollar demand. “The festive season often brings a temporary slowdown in foreign-exchange demand,” said Ronald Mensah of Stanbic Bank Ghana.
Kenya’s shilling is also predicted to remain largely unchanged, trading around 129.30 to 129.50 to the dollar, reflecting a year-long trend of relative stability. Traders noted that preparations for closing annual accounts may generate minor activity, but the currency is unlikely to shift significantly.
Meanwhile, Uganda’s shilling could strengthen in the coming week, buoyed by reduced appetite for hard currency and remittances from the diaspora, which provide additional foreign exchange inflows. In contrast, Zambia’s kwacha may face mild pressure due to increased demand for dollars as imports rise during the festive season. The kwacha was quoted at 23.16 per dollar, slightly weaker than 23.12 a week ago.
Outlook for the Naira
The naira’s relative stability offers relief to Nigerian businesses and households that have been grappling with high dollar demand and fluctuating rates. Central bank interventions remain key, ensuring that liquidity is sufficient to meet market needs without triggering sharp depreciation.
“If the central bank maintains its intervention strategy and dollar inflows remain steady, the naira should continue to hold its ground next week,” the Lagos trader added.
As African economies enter the final month of 2025, the naira’s performance contrasts with the varied fortunes of other regional currencies, highlighting Nigeria’s cautious but controlled approach to managing exchange rates amid persistent external pressures.
Babatunde Ogunsakin ✔
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