Naira Depreciates to 1,385/$ Amid Middle East Tensions

The Naira has slipped to 1,385 per US dollar, a decline attributed to escalating conflicts in the Middle East, which have sent shockwaves through the global financial system. Previously, the Naira had shown signs of stability at 1,360 but has depreciated by approximately 0.3% over the past fortnight.

Nigeria's position as a leading crude exporter has provided some buffer against global volatility, but the domestic economy is beginning to feel the impact of rising energy costs. Analysts, including Matthew Anthoni, a senior market analyst at Africa Global, have noted that the recent spike in gasoline prices—up 30%—could lead to broader consumer price increases, potentially undoing progress made by the Central Bank of Nigeria (CBN) in managing inflation, which eased slightly to 15.06% in February.

The ongoing conflict has raised concerns about supply shocks, prompting the CBN to reconsider its plans for interest rate cuts in 2026, as it may need to adopt a more defensive stance against inflationary pressures.