The Nigerian Naira continued its downward trajectory on Friday, closing at ₦1,398 per dollar.
This marks the currency’s weakest performance since January 28, 2026, when it stood at ₦1,394/$.
Data from the Central Bank of Nigeria (CBN) revealed that during the final trading session of the week, the exchange rate saw fluctuations between ₦1,404/$ and ₦1,398/$, resulting in a simple average of ₦1,394.55/$.
The week began with the Naira opening at ₦1,376/$ on Monday, followed by a decline to ₦1,390/$ on Tuesday.
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While the currency saw its only improvement on Wednesday—strengthening slightly to ₦1,382/$—the recovery was temporary.
By Thursday, it had dropped to ₦1,388/$ before reaching the ₦1,398/$ mark by the close of business on Friday.
This steady decline has been visible since February 17, when the rate was recorded at ₦1,337/$.
Experts linked this persistent depreciation to a lack of foreign exchange liquidity and the impact of speculative activities.
Additionally, the US dollar’s rise to a three-month high has pressured emerging market currencies like the Naira.
Investors have reportedly flocked to the dollar for safety amid heightened geopolitical instability, leading to the dollar index’s strongest single-day gain in seven months.
Despite the current market pressure, the Central Bank of Nigeria has highlighted a strengthening in the nation’s financial buffers.
CBN Governor Olayemi Cardoso recently provided figures to support this positive outlook, noting that net foreign exchange reserves reached $34.80 billion by the end of 2025.
Furthermore, he stated that gross reserves had increased to $50.45 billion by February 2026.
The apex bank remains hopeful that increased oil revenues and a rise in foreign inflows will provide the necessary support to stabilize the currency in the long run.
However, officials acknowledged the role of external shocks, particularly the conflict in the Middle East, in driving the current volatility.
