Naira Steadies at ₦1,484/$ Amid Lower FX Demand

Naira Vs Dollar

The naira gained ground on Tuesday, closing at ₦1,484/$ at the official FX market — a slight improvement from Monday’s ₦1,497/$.

In Lagos’ parallel market, however, the naira traded weaker, hovering between ₦1,520–₦1,530/$.

Analysts point to two key supports for the local currency: reduced FX demand from banks tightening naira card usage abroad, and slowing inflation figures offering some relief.

Inflation Update

• Headline inflation eased to 20.12% in August, down from 21.88% in July.

• Food inflation, though still high, also moderated, falling to 21.87% YoY.

• Month-on-month inflation slowed sharply to 0.74%, compared to July’s 1.99%.

This marks the fifth consecutive month of decline, signaling that price pressures may be easing.

 The U.S. dollar is steady ahead of a widely expected interest rate cut by the Federal Reserve later today. Traders are pricing in at least a 25bps cut, with some betting on more before year-end.

For Nigerian businesses, the softer dollar and easing inflation could provide some near-term breathing room — but volatility remains a watchword as markets await the Fed’s decision.