Lagos, Nigeria | September 4, 2025
Standard Bank has adjusted its medium-term outlook on the Nigerian naira, forecasting that the currency will close 2025 at ₦1,585.5 per US dollar, a stronger position than its earlier projection of ₦1,697.5/$1.
The bank, in its latest assessment obtained by Nairametrics on Wednesday, noted that recent improvements in Nigeria’s foreign exchange market and macroeconomic environment prompted a revision of its earlier forecast. The new projection implies a 3.1% depreciation against the dollar in 2025, but at a firmer level than previously anticipated.
Looking ahead, Standard Bank expects the naira to settle at around ₦1,692.6/$1 by the end of 2026, cautioning that election-related fiscal pressures could weigh on the currency as the 2027 general elections approach.
The revised forecast aligns with recent stability in Nigeria’s exchange rate, with the naira trading at ₦1,528/$1 officially and around ₦1,555/$1 in parallel markets as of July 2025. Independent projections vary, with the African Development Bank warning of a sharper depreciation and local analysts forecasting relative stability.