Senior Market Analyst at FXTM, Mr. Lukman Otunuga, has praised the Central Bank of Nigeria’s (CBN) decision to reduce interest rates, noting that the move could stabilize and potentially strengthen the Naira, which has appreciated by six percent year-to-date.
Otunuga highlighted that growing confidence in the Nigerian economy—supported by lower rates, improved foreign exchange liquidity, and rising FX reserves that have reached a 13-year high—provides a strong foundation for the local currency.
He added that even with the 50-basis-point rate cut, real interest rates remain elevated when adjusted for inflation.
“Nigeria’s interest rates are still among the highest in Africa, which could attract foreign portfolio investors and lend additional support to the Naira,” Otunuga said.
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