Citi expects the naira to weaken in 2026 as the CBN eases policy and oil prices fall.
The naira could come under renewed pressure in 2026 after a year of rare stability, Citigroup has warned.
David Cowan, Citi’s African economist, said in a client note on Wednesday that the currency may weaken to between ₦1,650 and ₦1,700 per dollar by mid-next year. “If, as we expect, inflation starts to ease next year and the CBN starts to more aggressively ease its tight monetary policy stance, we would expect some modest pressure on the naira as 2026 progresses,” Cowan said.
The Central Bank of Nigeria this week cut interest rates for the first time in five years, lowering the benchmark rate by 50 basis points to 27 percent. Inflation has slowed for five straight months, reaching 20.12 percent in August.
Citi, however, warned that falling crude prices could weaken foreign exchange inflows, eroding support from oil exports, CBN interventions, and portfolio inflows that have helped keep the naira at ₦1,490.4 per dollar.