The naira fell to ₦1,425/$ on Monday, marking its lowest since January 12, 2026.
On Friday, traders exchanged it at ₦1,398/$, reflecting growing pressure on the currency.
Meanwhile, investors monitored global oil prices and U.S. dollar shifts, which directly influenced local rates.
Naira Hits Six-Week Low
On February 17, traders valued the naira at ₦1,337/$ before it gradually weakened afterward.
It briefly strengthened to ₦1,382 on Wednesday; however, it resumed its downward trajectory in following sessions.
Analysts explain the decline stems from global uncertainty, fluctuating commodity prices, and shifting investor sentiment.
Global Tensions Drive Volatility
Moreover, geopolitical tensions in the Middle East, especially involving Iran, continue to affect global markets.
Donald Trump suggested military operations progressed faster than expected, which eased some immediate investor fears.
Additionally, Iran’s Revolutionary Guards dismissed the claims as “nonsense,” calming concerns over potential oil supply disruptions.
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In international markets, traders exchanged the U.S. dollar at 157.73 yen and $1.1632 per euro.
Consequently, mixed signals prompted investors to adopt cautious, wait-and-see strategies, reducing earlier market panic.
Reserves Provide Cushion
Nigeria increased net foreign exchange reserves to $34.8 billion at the end of 2025.
Furthermore, gross external reserves climbed to $50.45 billion by February 2026, supported by higher oil earnings.
The Central Bank of Nigeria believes these reserves actively cushion the naira against prolonged pressure.
Governor Olayemi Cardoso stated that ongoing reforms aim to strengthen confidence and improve liquidity conditions.
Moreover, the CBN projects reserves could reach $51.04 billion in 2026, driven largely by oil revenues.
For the naira, pressures persist, yet improving reserves and reforms may gradually stabilise the currency.
Analysts argue the currency’s journey highlights its sensitivity to global shocks and shifting investor sentiment.
