Naira Weakens Further in Black Market Amid Economic Strain

In February 2026, the Nigerian Naira has experienced a sharp decline against major international currencies, particularly in the black market foreign exchange segment. On February 6, the Naira was reported at 1,435 to the US dollar and 1,670 to the Euro, reflecting a growing gap between demand and supply of foreign currency.

Traders attribute this pressure to a persistent scarcity of foreign exchange, rising demand for imports, and ongoing instability in Nigeria's foreign exchange market. The Central Bank of Nigeria's inconsistent policies and frequent changes in foreign exchange regulations have left businesses uncertain, further increasing reliance on the black market.

The decline in foreign direct investment, coupled with infrastructural challenges and economic uncertainty, has compounded the issue. As a result, ordinary Nigerians face rising costs for essential goods and services, with no immediate relief in sight.

Analysts warn that without consistent policies to improve exports and restore investor confidence, the Naira's decline is likely to continue.