The Nigerian naira lost a maximum of 2.6% in the second quarter of 2026, outpacing some of its regional counterparts in resiliency in the face of rising conflicts in the Middle East. World Bank’s Africa Economic Update for October cautioned that 22 African currencies, excluding the CFA franc, would suffer from geopolitical tensions.

During the same time period, Ghana’s cedi depreciated by as much as 10%. The South African, Lesotho, Namibia and Eswatini currencies fell by up to 7.2% on the other hand. The Democratic Republic of Congo also depreciated 6%, and Uganda 5%, while seven of the 22 countries monitored saw depreciations over 5%.

Come August 2026, the naira had rallied back to its lows as recorded in March to June, placing Nigeria in the ranks of those economies that are seeing rapid reversals from the worst currency pressures. However many peers persisted in their pain, Ghana’s currency was 2.5% weaker, Uganda’s was down 3.1% and South Sudan saw its currency drop by 5.5% for good. Rising energy prices were the major contributor to the general currency strain as they led to an expansion of dollar demand and to higher costs in local currency for servicing external debt.

The naira’s cushion was provided by the fact that Nigeria is a major crude oil exporter. Both Nigeria and Angola witnessed improved export earnings and foreign currency receipts as the oil price climbs. However, the nation’s macroeconomic stability and the rebound of private investment, under the watch of the Federal Ministry of Finance and other national bodies, has seen the World Bank lift Nigeria’s 2026 growth projection to 4.3%, from a projected 4.0% in 2025.

The local currency in recent trading strengthened by N1.31 or 0.09% to end at N1,329.16/$1 on the official Nigerian Foreign Exchange Market. The naira, however, today fell against the British pound sterling and the euro during the same trading session, even though it improved against the dollar by the above margin.