The Nigerian naira is expected to depreciate to a weighted fair value of N1 804.45 over the coming year as the volatility trend persists. This is according to a new report by Afrinvest, a Lagos-based investment and research firm, entitled “Beyond rhetorics: turning reforms into tangible realities

The research firm revealed that while gross foreign exchange reserves exceeded $40 billion, “we expect exchange rate volatility to continue in 2025, although at a modest pace.”

“Our prognosis is based on the belief that the CBN would be limited in its ability to adequately meet market demand on a sustainable basis, as the recent increase in foreign exchange reserves has been largely fuelled by inflows from inorganic sources, including those subject to strict conditions of use,” he said.

According to the report by Afrinvest, an investment and research firm based in Lagos, the Nigerian naira is expected to depreciate to a fair weighted value of 1,804.45 naira to the US dollar in 2025, in a context of continued volatility in the foreign exchange market. The report, entitled “Beyond Rhetorics: Turning Reforms into Results,” notes that while Nigeria's foreign exchange reserves have grown to over $40 billion, the exchange rate is expected to remain volatile next year, although at a slower pace