Nigeria’s naira slipped to N1,376 per dollar on Monday, extending its recent volatility as the U.S. dollar strengthened globally. The decline comes amid renewed geopolitical tensions in the Middle East, with U.S. strikes on Iran triggering a fresh rush to safe-haven currencies. Data from the Central Bank of Nigeria (CBN) shows the naira weakened from N1,368.5 per dollar recorded on Friday.
Investors’ flight to the dollar pushed the greenback to its strongest single-day gain in seven months, with the dollar index rising nearly 1%. Analysts say the rally has restored the dollar’s traditional role as a crisis-era hedge after months of skepticism, putting pressure on emerging market currencies, including the naira. On Monday, the naira traded between N1,368.5 and N1,397 per dollar, with a simple mean of N1,378.48.
Despite the recent depreciation, the movement largely reflects short-term global volatility rather than domestic forex fundamentals. February 2026 data shows the naira started the month at N1,384.5/$ and ended February at N1,368.5/$ in the official market, indicating a modest appreciation month-on-month. Analysts stress that external factors, particularly the dollar’s rally, are the main drivers of the current fluctuations.
Central Bank of Nigeria Governor Olayemi Cardoso has highlighted the country’s stronger external reserves as a buffer against currency shocks. Net foreign exchange reserves rose from $23.11 billion at the end of 2024 to $34.80 billion at the end of 2025, while gross reserves climbed from $40.19 billion to $45.71 billion. As of mid-February 2026, gross reserves reached $50.45 billion, giving the CBN more capacity to manage volatility in the foreign exchange market.
For now, the naira’s movements underscore how sensitive Nigeria’s currency remains to global developments. While domestic forex conditions remain relatively stable, investors and businesses should anticipate short-term swings in exchange rates amid global uncertainty. The renewed dollar rally is likely to keep emerging market currencies under pressure, reinforcing the importance of strong reserves and strategic monetary policy.
source: nairametrics