Naira Declines Sharply in Black Market FX in February 2026

In February 2026, the Nigerian Naira is experiencing a sharp decline in the black market foreign exchange segment, exacerbating concerns about the state of Nigeria's foreign exchange market. On Saturday, February 14, the Naira recorded further losses against the US dollar, Euro, and British pound, with rates reaching 1,435 Naira per dollar and 1,670 Naira per Euro.

Traders attribute the Naira's depreciation to a persistent scarcity of foreign exchange and rising demand for imports and travel. The situation is compounded by long-standing structural issues and inconsistent policies from the Central Bank of Nigeria (CBN), which discourage investor confidence and contribute to Nigeria's trade imbalance.

The reliance on imports for basic goods and weak export capacity continue to drain foreign exchange reserves. Analysts note that external pressures, including oil price volatility and inflation, further strain the fragile economic system.

The rising exchange rates translate directly to higher costs for food, transportation, and healthcare, impacting the purchasing power of ordinary Nigerians.