Naira Weakens Further in February 2026 Amid FX Crisis

In February 2026, the Nigerian naira has experienced a sharp decline in the black market foreign exchange segment, continuing its downward trend despite assurances from authorities. On February 13, the naira recorded further losses against the US dollar, euro, and British pound, with rates reaching 1,435 naira to 1 dollar, 1,670 naira to 1 euro, and 1,970 naira to 1 pound.

This situation highlights the growing gap between demand and supply of foreign currency, raising concerns about the stability of Nigeria's foreign exchange market. Traders attribute the naira's pressure to persistent scarcity of foreign exchange, increased demand for imports, and travel, compounded by long-standing structural issues.

The Central Bank of Nigeria's inconsistent policies and frequent changes in foreign exchange regulations have left businesses uncertain, further driving reliance on the black market. Analysts note that external pressures, such as oil price volatility and inflation, exacerbate the already fragile economic system, leading to higher prices for essential goods and services, while the government faces criticism for its slow response to the crisis.