The Nigerian currency weakened further on Friday, closing at ₦1,398 per dollar, its lowest level since January 28, 2026, when it traded at ₦1,394/$.
Data released by the Central Bank of Nigeria showed that the naira traded within a range of ₦1,404/$ and ₦1,398/$ during the final trading session of the week, while the simple average exchange rate settled at ₦1,394.55 per dollar.
The currency began the week at ₦1,376/$ on Monday before weakening to ₦1,390/$ on Tuesday.
However, it recorded a brief recovery on Wednesday, appreciating slightly to ₦1,382/$.
The rebound was short-lived as the naira resumed its downward movement, closing at ₦1,388/$ on Thursday and declining further to ₦1,398/$ on Friday.
The latest depreciation follows a gradual slide from ₦1,337/$ recorded on February 17, indicating sustained pressure on the local currency.
Analysts Cite FX Liquidity Challenges
Market analysts attribute the continued weakness of the naira to persistent foreign exchange liquidity challenges and speculative activities within the market.
Despite the recent depreciation, the Central Bank of Nigeria says there are signs of improvement in the country’s external reserves.
CBN Governor Olayemi Cardoso recently revealed that Nigeria’s net foreign exchange reserves rose to $34.80 billion by the end of 2025, while gross reserves increased to $50.45 billion as of February 2026.
According to the apex bank, stronger oil revenues and improved foreign inflows could help support reserve levels and contribute to stabilising the naira in the medium term.
Global Factors Also Contributing
External developments have also added pressure to the Nigerian currency.
Rising geopolitical tensions in the Middle East have strengthened the United States dollar, pushing it to a three-month high as global investors seek safer assets.
The U.S. Dollar Index reportedly gained nearly 1% on Monday, marking its strongest single-day rise in about seven months and putting additional pressure on emerging market currencies, including the naira.
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