LunagisthubNaira Plumps as Dollar Scarcity Bites Harder
The naira has recorded a significant weekly depreciation against the US dollar, weakening to N1,363.39 per dollar at the official market and N1,375 per dollar at the parallel market. This represents a week-on-week decline of N17.07 and N58, respectively.
The naira’s bearish performance is attributed to the Central Bank of Nigeria’s dollar mopping exercise, confirmed by President Bola Ahmed Tinubu. Despite this, Nigeria’s external reserves rose to $49.51 billion as of February 25, 2026.
Analysts predict continued volatility, with the African Development Bank forecasting a 6% depreciation in 2026 due to global market uncertainties. However, PwC Nigeria projects stability, citing improved FX liquidity and Central Bank reforms.
Will the Central Bank’s efforts stabilize the currency, or will external pressures dominate? How will this impact Nigeria’s economy and investors?
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