Naira Depreciates to N1,398/$, Weakest Since January

The Naira has fallen to N1,398 per dollar, its weakest level since January 28, 2026, when it settled at N1,394. This depreciation occurred during the trading session on Friday, with the average exchange rate settling at N1,394.55.

The decline reflects persistent pressures in the foreign exchange market, which have been ongoing since mid-February when the Naira was valued at N1,337 on February 17. Market analysts attribute this latest slide to ongoing liquidity constraints in the foreign exchange market and continued speculative activities.

Reports indicate a gap between the official and parallel market rates, influencing trading behavior. Despite the depreciation, the Central Bank of Nigeria has pointed to improvements in Nigeria's external reserves.

External factors, including a strengthening U.S. dollar and rising geopolitical tensions in the Middle East, have added further pressure on emerging market currencies, including the Naira. The Central Bank's 2026 macroeconomic outlook projects support from higher oil revenues.