The naira is expected to remain largely stable in the next six months while borrowing rates are projected to decline in the same period, according to a Business Expectation Survey (BES) report published by the Central Bank of Nigeria.

According to the report, the naira is expected to move from its current index of 28.8 points to 42.2 points over the next six months to May 2026, sustaining its rare stability that began this year.

Borrowing rates, on the other hand, is said to slow from its 15.4 index points to 11.7 points in the next six months as inflation, the key indicator of monetary tightening, continues its downward trend.

Read also: Naira rebounds despite 15.2% drop in weekly FX inflows

“Respondents expect the Naira to US Dollar exchange rate to steadily appreciate across the review periods, as indicated by the positive indices. Also, they anticipate a continuous positive outlook for the borrowing rate during the same periods,” the monthly BES report which surveyed 1,900 businesses across the country stated.

The Nigerian naira is currently witnessing a long period of stability, a trend that is uncommon in recent years after it shed 41 percent of its value last year following the unification of the exchange rate and subsequent floating of the currency to make it more market-determined.

Though the currency is currently experiencing a mild depreciation due to FX demand from local corporates to meet import needs on the occasion of the festive season, analysts anticipate that the naira will remain stable supported by the CBN’s measured interventions to manage excess volatility and continued inflows from foreign portfolio investors.

Read also: Naira cools for seven straight trading days

To anchor stubbornly high inflation, the monetary authorities have held benchmark interest rates steady from last year and only slashed borrowing rate by half basis point in its penultimate meeting for 2025, putting Nigeria’s monetary policy rate at 27 percent even though the asymmetric corridors have been significantly adjusted to allow credit extension.

With inflation now projected to hit single digit next year from 14.45 percent it stood in November, authorities may have clearer reasons to start cutting rates and allow more credit flow for businesses that are on the chokehold.

Insecurity, multiple taxes remain pressure points for firms

According to the report, insecurity, high and multiple taxes remain the biggest constraint for businesses in Africa’s most populous economy even as corporates still navigate double digit inflation and volatility from foreign exchange.

“Respondents identified Insecurity (70.1), High/Multiple Taxes (69.7), Insufficient Power Supply (69.3), High Interest Rate (67.2), and Financial Problems (64.7) as the top five (5) business constraints in November 2025, highlighting factors that directly impact on operational stability and profitability,” the report noted.

Read also: Inflation projected to moderate further in 2026, but no single digit in sight

“At the bottom of the top ten constraints were Poor Infrastructure (57.7) and Unfavourable Political Climate (57.7). This suggests that business constraints were more focused on financial factors than political challenges in the review period.” (Business Day)