Naira set to shrug off election risk in strongest run since 2018
Nigeria's naira is projected to achieve its strongest annual performance since 2018, driven by higher oil prices and increased dollar liquidity. Analysts expect the currency to stabilize between 1,200 and 1,350 per dollar by year-end.
Why it matters
Currency stability is a critical indicator of economic health for emerging markets, impacting inflation, foreign investment, and debt servicing capabilities.
Nigeria’s naira is on course for its strongest annual gain since at least 2018, shrugging off the political risks typically associated with an election season as higher oil prices and stronger remittance inflows boost dollar liquidity, analysts say. The currency is forecast to strengthen to 1,290 per dollar by year-end from 1,328.92, according to the average estimate of four investment banks. That would extend its 8 per cent gain so far this year to almost 12 per cent, marking its best annual performance in at least eight years.
According to projections compiled from major investment firms, the naira is expected to settle between 1,200 and 1,350 per US dollar by year-end.
GTCO, Zenith, First Holdco, Aradel, MTNN, Dangote Cement, others make FTSE Russell eligible stocks for Frontier Index Series
Nigeria’s growth recovery is gaining pace, but history sets a higher bar
Why Nigeria should target $2trn economy, AFC chief Zubairu
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in