AGS NEWS – Fitch Ratings has forecasted that the Nigerian naira will end the year at 1,450 to the US dollar.

This was revealed by Gaimin Nonyane, Director of Sovereigns at Fitch Ratings, during a webinar focused on Nigeria and Egypt.

Fitch recently revised Nigeria’s Long-Term Foreign-Currency Issuer Default Rating outlook to Positive, citing reforms in the foreign exchange market, oil industry, and monetary policy.

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Nonyane explained that the naira is still stabilizing and experiencing volatility but expects donor funding and improved oil receipts to reduce this by the third quarter.

Fitch projects the naira will average about 1,200 per dollar this year and end around 1,450 per dollar.

Further upgrades for Nigeria depend on sustained improvements in foreign exchange stability, inflation reduction, and increased domestic non-oil revenue.

Nonyane also noted a potential recovery in the oil sector, with increased refining capacity from the Dangote plant expected to reduce foreign exchange demands.

Nigeria’s foreign exchange reserves, which have decreased to around $32.7 billion, are projected to rise modestly by year-end due to recovery in oil receipts and multilateral funding.

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Finance Minister Wale Edun mentioned that the World Bank is considering a $2.25 billion package for Nigeria, recognizing recent economic stabilization efforts.

This funding is expected to support Nigeria’s economic growth and stability.