THE NAIRA hit the highest level in 2025 on Monday, closing at 1,452.79/$, its strongest level in 2025. According to the Central Bank of Nigeria (CBN) data seen by Economy Post, the currency reported its biggest appreciation this year yesterday, with its second strongest level in the year reported on October 10 when it stood at 1,455.17/$.
Despite the naira appreciation, the cost of living remains stubbornly high, an indication that the reported falling inflation does not yet reflect the daily market realities. Nigeria’s headline inflation rate eased to 18.02 percent in September as against 20.12 percent in August 2025, according to the National Bureau of Statistics (NBS), marking the sixth consecutive month of deceleration in inflation.
Yet, prices of several items used daily by Nigerians are yet to decline as citizens struggle to make both ends meet. The price of a litre of petrol is now higher at N920 or N915 in Lagos and N945-N960 in Abuja and South-East Nigerian states, including Port Harcourt, as against N855-N875 in September.
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A plate of food costs between N1,500 and N2,500 at roadside restaurants, with a bottle of water costing as high as N300 in Asaba, Edo and the majority of South-East Nigerian states. It, however, costs N200 in Lagos due to a higher level of competition among manufacturers.
Annual costs of house rents are fast rising, with a two-bedroom flat being priced as high as N1.5 million to N2.5 million in Lagos, Abuja, Owerri, Awka, and Port Harcourt. A one-room flat in these cities costs as high N500,000 to N1 million.
Clothes aren’t getting cheaper, either, with averagely priced low-end women’s dress costing N25,000 and above. To secure a fairly-good shirt, men spend up to N20,000, with children’s clothes costing higher. An Economy Post‘s reporter priced a pair of shoes worn by three-year-olds in Lagos and was told to pay N25,000. A pair of men’s shoes costs between N15,000 to N40,000.
“The naira has appreciated and stabilised, yes, but it is yet to reflect on prices of products that much, ” said an economist, Dr Peter Ashade.
“The reasons are diverse. One, when inflation falls, it may not mean that prices are now lower. It could mean that the rate of acceleration has dropped.
“Two, the exchange rate of the naira to the dollar is still relatively higher than it was pre-May 2023. Three, several goods are still imported, which makes the inflation rate in Nigeria somehow imported. Four, production is still stagnant, and nothing significant has been done to increase the output levels across the board.”
He cited an example with housing growth, stressing that the population growth far outweighs housing. “Take for instance, the population grows at 2.6 percent annually. This means that about 5.7 million people are added to the current 220 million population each year. Yet, only 70,000 houses are built yearly. How can you solve the housing crisis and the syrocketing cost of rents like that?” he asked.
He said that the same situation is seen across various sectors, noting that the nation is yet to do something serious about raising its production levels.
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“Since the NBS rebased the Consumer Price Index (CPI) in December 2024, have you seen any differences or changes in welfare? We should have seen some impact cnsidering the time lag. But what we have seen are just marginal drops in the cost of foods due to the harvest season. After the harvest season, what hapens next? No significant effort is being made to end the farmer-herder clash or boost fertilizer supply to farmers. Nothing significant is done to raise food output. How then can you have an impactful drop in the cost of living?” he noted.
Naira vs 10 currencies
Economy Post had earlier compared Nigeria’s currency to 9 others, revealing that the naira is stronger than several currencies in the world, including the Vietnamese dong. Dong exchanges for N1 at VND 17.535. But one United States dollar can buy products worth 26,455 VND in Vietnam as against goods worth N1,497 in Nigeria. Experts say Vietman deliberately sets its curency at low rates to export more of its products.
“SBV is likely to allow the dong to gradually weaken over time, hopefully in a orderly fashion,” said a currency strategist at MUFG Bank in Singapore, Mr Michael Wan, as quoted by Business Times. “But it wouldn’t want the weakness to be too sharp, and it will definitely be ready to intervene to prevent that.”
The naira is stronger than the currency used by the people of Lao People’s Democratic Republic known as the Laotian Kip (LAK). One naira exchanges for 14.49 LAK, with one dollar swapping for 21,681.02 LAK.
Indonesia rupiah exchanges for N0.091 but goes for 16,401.67 IDR to a dollar. Analysis further shows that one naira can buy 8.61 Syrian pound (SYP). A dollar exchanges for 11,530 SYP as against naira’s 1,497. Similarly, N1 exchanges for 8.25 Uzbekistani Som (UZS) as against 12,350.22 UZS to a dollar. On the other hand, the Nigerian currency exchanges for 8.50 Guinea Franc(GNF), but the dollar exchanges for 8,676.04 GNF.
More so, 1 Nigerian currency can buy goods worth 4.77 Paraguayan guarani (PYG) but a dollar can buy goods valued at 7,108 PYG. Counterfeiting has been a major problem of the currency. Its people are still poor, though the poverty rate has declined in the last decade.
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Furthermore, Madagascar uses Malagasy Ariary (MGA), which exchanges for 2.94 MGA to 1 naira. A stronger dollar can buy goods worth 4,405.75 MDG in the African nation.
The Cambodia riel (KHR) exchanges for 2.68 to N1 and 4,008.29 KHR to a dollar. Also, the Congolese Franc (CDF) can be swapped for N1.91 as against 2,876.21 CDF to a dollar. Cambodia uses the dollar to make major purchases, which is hurting its local currency, making it a partially dollarised nation. Wages are even paid in US dollars, hurting the economy.
