Citigroup: The Nigerian naira may face moderate pressure next year after stabilizing in 2025.

Citigroup said that with the gradual interest rate cut by the Central Bank of Nigeria and the drop in oil prices, the Naira may face moderate pressure next year after stabilizing in 2025. Citigroup's Africa economist David Cowan said that by the middle of next year, the currency of this largest oil-producing country in Africa may devalue to a range of 1,650 to 1,700 Naira per US dollar. The Central Bank of Nigeria cut its key interest rate by 50 basis points to 27% on Tuesday, the first time in five years, signaling the beginning of an easing cycle after inflation fell to a near one-year low of 20.1% in August. Cowan said that the devaluation of the Naira may first start with outflows of portfolio funds. He said that Citigroup traders estimated that about $9 billion of this inflow into the Nigerian market is currently happening.