Norrenberger, an advisory and asset management company, has forecasted that in the second half of 2025, the Naira may endure some heat as a result of unexpected easing cycle by monetary authorities and seasonal demand for foreign exchange for tourist summer travels abroad.

In the firm’s recently released economic analysis, it noted that the renewed U.S. protectionist policies under President Donald Trump, including the re -imposition of tariffs on certain countries, may lead to a stronger U.S. dollar, thereby exerting downward pressure on emerging market currencies like the naira.

“Key factors that could weigh on FX inflows in H2 include the anticipated monetary policy easing by the CBN, which may result in reduced FPl attraction,” Norrenberger wrote in its report titled ‘The Great Recalibration: From Shock to Calm.’

“Additionally, seasonal demand for foreign exchange is expected to rise, particularly due to summer travel and increased payments for foreign education, a period traditionally associated with pressure on the naira.”

The naira has remained largely stable for the first half of 2025, facilitated by both fiscal and monetary stimulus aimed at attracting long-term capital and eliminating arbitrage opportunities in the market.