Naira Declines Sharply in Black Market Amid Economic Strain

In February 2026, the Nigerian Naira experienced a sharp decline against major international currencies, with the black market rates reflecting a significant gap between demand and supply. On Thursday, February 12, the Naira was reported at 1,435 NGN to 1 USD and 1,670 NGN to 1 EUR, with further losses against the British Pound.

Analysts attribute the Naira's continued depreciation to persistent foreign exchange scarcity, rising demand for imports, and the country's heavy reliance on imports for basic goods. The Central Bank of Nigeria (CBN) has faced criticism for its inconsistent foreign exchange policies, which have discouraged investor confidence and contributed to a decline in foreign direct investment (FDI).

The economic environment remains unstable, exacerbated by external factors such as oil price volatility and inflation. As a result, ordinary Nigerians are struggling with rising costs of living, including food, transportation, and healthcare, while the government has been criticized for its slow response to the crisis.