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Naira Outlook Remains Stable to Bullish Amid Strong FX Inflows

The Nigerian Naira is expected to maintain a stable-to-bullish trend, with a six-month target range between N1,250 and N1,350 per dollar. This outlook is supported by sustained CBN interventions, robust diaspora remittances, and improved crude oil export earnings. Despite the recent 350-basis point cut in the Monetary Policy Rate to 23%, local bond yields remain attractive, offering a real yield of over 3%, which continues to draw both local and foreign portfolio investors. However, analysts caution that the outlook could shift if crude oil prices decline significantly or if seasonal import demand overwhelms current market liquidity.

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