The Nigerian naira fell to ₦1,398 per US dollar on Friday, amid foreign exchange constraints, global market volatility, and geopolitical tensions affecting emerging market currencies
The Nigerian naira weakened further on Friday, closing at ₦1,398 per US dollar, its lowest level since January 28, 2026, when it stood at ₦1,394/$.
Data from the Central Bank of Nigeria showed the naira fluctuated between ₦1,404/$ and ₦1,398/$ during the last trading session of the week, with the simple average exchange rate at ₦1,394.55/$.
The currency began the week at ₦1,376/$, dipped to ₦1,390/$ on Tuesday, recovered slightly to ₦1,382/$ on Wednesday, before resuming its downward trend to close at ₦1,388/$ on Thursday and ₦1,398/$ on Friday. Since ₦1,337/$ on February 17, the naira has gradually depreciated.
Causes of the Depreciation
Market analysts attribute the slide to foreign exchange liquidity constraints and speculative market activity. External factors, including geopolitical tensions in the Middle East and a strengthening US dollar, have also put pressure on the naira. The dollar index climbed nearly 1% on Monday, marking its strongest single-day gain in seven months as investors sought safe-haven assets.
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Despite the depreciation, the CBN Governor, Olayemi Cardoso, highlighted that Nigeria’s net foreign exchange reserves rose to $34.80 billion at the end of 2025, while gross reserves reached $50.45 billion as of February 2026. Stronger oil earnings and foreign inflows are expected to help stabilize the naira over the medium term.
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