Naira Depreciation Deepens Amidst Black Market Pressures

In February 2026, the Nigerian naira experienced further depreciation against major international currencies, particularly the United States dollar, euro, and British pound, in the black market. As of February 8, the naira was trading at 1,435 naira to the dollar and 1,670 naira to the euro.

This decline reflects ongoing pressures in Nigeria's foreign exchange market, exacerbated by a persistent scarcity of foreign exchange and rising demand for imports and travel. Analysts attribute the naira's struggles to long-standing structural issues, inconsistent monetary policies, and a lack of investor confidence, leading to a decline in foreign direct investment.

The Central Bank of Nigeria's frequent changes in foreign exchange regulations have left businesses uncertain and reliant on the black market. The economic situation has resulted in higher prices for essential goods and services, impacting the purchasing power of ordinary Nigerians.

Without consistent policies to improve exports and restore investor confidence, the naira is expected to continue its downward trend.