Naira’s rally is temporary, don’t get carried away — Rewane warns

Bismarck Rewane, the managing director and chief executive officer of Financial Derivatives Company (FDC) has warned policymakers not to throw caution to the wind as a result of the recent stability of the naira that have become more predictable.

The economist stated that the quick appreciation of the naira is “temporary” and should be treated with caution, advising Nigerian policymakers not to be “carried away”.

“We’re seeing that the naira is strengthening but with caution. Let’s not be too hasty because it’s going to correct itself,” Rewane said at a presentation on Channels Television Friday.

“There are many things that are happening: reserves of over $40 billion are coming down. We’ve also borrowed $4 billion in bond issues.

“When you look at all of that, we’ve almost spent $8 billion to support the naira at the current levels,” he revealed.

Read also: Official, black market naira rates converge at 1,510/$ for first time in 2yrs

But the naira maintained stability across foreign exchange (FX) markets despite steady decline in external reserves that have shed over $3 billion year to date.

Data from the Central Bank of Nigeria (CBN) showed that the naira appreciated to N1,502.50 per dollar week-on-week, gaining 0.56 percent or N8.50 compared to N1,511/$ closed the previous week at the Nigerian Foreign Exchange Market (NFEM).

Authorised currency dealers quoted the dollar at the highest rate of N1,509 on Friday, stronger than N1,520 last week Friday.
The market recorded the lowest rate of N1,491 per dollar on Friday as against N1,500 last week at NFEM.

At the parallel market, popularly called black market, the naira appreciated by N45, gaining 2.0 percent as the dollar quoted at N1,510 on Thursday and Friday from N1,555 quoted last week Friday.

Read also: Naira’s rally to N1,500/$ is nothing to celebrate — Teriba

Rewane however noted that while the new found stability of the naira should be treated with caution, the local currency has strengthened by 9 percent so far in 2025.

The naira has been maintaining its rally up from December after the CBN introduced some reforms to ensure efficiency and transparency in the market.

He highlighted that inflationary pressures are easing while signaling a bright side for the country’s gross domestic product (GDP) growth.

“On the bright side, the Nigerian naira has appreciated by 9 percent in 2025, inflation pressures are easing and GDP growth is positive. Petrol/diesel prices are cooling and the PMI is expanding,” he said.