Naira slipped further despite rising reserves as CBN eased monetary policy.
NewsOnline Nigeria reports that the naira weakened again on Tuesday, closing at ₦1,493.20 per dollar in the official market, following the conclusion of the Central Bank of Nigeria’s (CBN) 302nd Monetary Policy Committee (MPC) meeting.
CBN data showed the local currency slipped from ₦1,491.49/$1 on Monday and ₦1,488/$1 on Friday, continuing a mild depreciation trend.
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In the parallel market, the naira also lost ground, trading at ₦1,521.50/$1 compared to ₦1,518/$1 on Monday, further widening the gap between official and street exchange rates.
Market sources at Wuse Zone 4, Abuja, confirmed the parallel market figures.
Reserves Hit Six-Year High
Amid currency weakness, Nigeria’s external reserves climbed to $42.03 billion, the highest level since September 2019. This marks a 72-month peak, with steady increases recorded throughout September.
According to CBN data, reserves rose from $41.99 billion on Monday and are significantly above the $41.42 billion level at the start of the month. September alone has seen gains in 13 out of 14 reporting days, highlighting consistent reserve growth.
MPC Cuts MPR to 27%
At its 302nd meeting, the MPC cut the Monetary Policy Rate (MPR) by 50 basis points, reducing it from 27.5% to 27%.
CBN Governor Olayemi Cardoso, announcing the decision in Abuja, said the adjustment was a cautious step to ease monetary conditions amid signs of moderating inflation and stronger macroeconomic fundamentals.
The Committee also narrowed the asymmetric corridor around the policy rate to +250/-250 basis points, from the previous +500/-100.
According to Cardoso, the measures are aimed at sustaining disinflation while ensuring liquidity in the banking sector to support credit growth and economic activity.
Economy Expands 4.23% in Q2
Nigeria’s economy grew by 4.23% in real terms in Q2 2025, driven by improved output in both oil and non-oil sectors, data from the National Bureau of Statistics (NBS) showed.
Analysts had urged the CBN to shift towards more flexible policies to stimulate credit flow, especially for SMEs and key productive sectors.
The Centre for the Promotion of Private Enterprise (CPPE) praised the latest policy moves, describing them as a “strategic and well-timed shift” from stabilization to growth.
Dr. Muda Yusuf, CEO of CPPE, noted that if sustained alongside fiscal and structural reforms, the new measures could unlock investment opportunities, create jobs, and accelerate inclusive economic growth.