Nigeria's Naira Stabilizes at ₦1,150/$ After Central Bank's Fourth Consecutive Rate Hike

₦1,150/$

Down from ₦1,580 peak in January — a 27% recovery in 11 weeks

Context

The CBN raised its benchmark rate to 28.5%, the fourth consecutive 100bps hike since December. Combined with $2.1B in forward sales and tighter bureau de change licensing, the parallel market premium has narrowed to under 5% for the first time since mid-2024. Foreign portfolio inflows rose 38% month-on-month in February.

Signal

Import-dependent businesses in Lagos may see 15–20% cost relief by Q3 if the CBN holds this corridor — watch the April MPC meeting for confirmation.