World Bank Reports 2.6% Naira Depreciation Amid Conflict

According to the World Bank's October 2026 Economic Update, the Nigerian naira depreciated by a maximum of 2.6% as the Middle East conflict intensified, affecting African currencies. The report analyzed exchange-rate movements across 22 African countries, revealing that most currencies depreciated in the second quarter of 2026.

In contrast, Ghana's cedi fell by 10%, while currencies from South Africa, Lesotho, Namibia, and Eswatini dropped by up to 7.2%. By August 2026, the naira had recovered some losses, improving by 1.9% from March-to-June lows, while Ghana's cedi remained 2.5% weaker.

The World Bank attributed the currency pressures to rising oil prices and geopolitical uncertainty, which affected investor confidence. However, Nigeria's status as a major crude oil exporter helped mitigate the naira's decline.

The World Bank raised Nigeria's growth forecast for 2026 to 4.3%, citing stronger investor confidence and macroeconomic stability, while warning of risks such as global financial conditions and upcoming elections.