The Nigerian naira was among the more resilient African currencies in the second quarter of 2026, despite exchange-rate pressures triggered by rising geopolitical tensions and higher energy prices, the World Bank has said.
The World Bank, in its October 2026 Africa Economic Update, said the naira’s maximum depreciation between March and June was 2.6 per cent, significantly lower than the losses recorded by several other African currencies.
Ghana’s cedi recorded the sharpest decline among the currencies highlighted, losing as much as 10 per cent during the period.
The currencies of South Africa, Lesotho, Namibia and Eswatini fell by up to 7.2 per cent, while the Democratic Republic of Congo and Uganda recorded maximum declines of six and five per cent respectively.
The World Bank reviewed exchange-rate movements in 22 African countries outside the CFA franc zone, comparing their performance with levels recorded before the escalation of the Middle East conflict.
The naira subsequently regained some ground, appreciating by 1.9 per cent from its March-to-June low by August, placing it among the currencies that recovered from the period of heightened pressure.
The recovery was stronger than that recorded by some regional peers. Ghana’s cedi remained 2.5 per cent below its end-February level by August, while Uganda’s currency was still down by 3.1 per cent.
South Sudan recorded one of the largest remaining declines, at 5.5 per cent.
According to the World Bank, only 10 of the 22 currencies tracked remained weaker than their end-February positions by the end of August.
The Bank attributed Nigeria’s relative resilience partly to its position as a major crude oil exporter, noting that higher oil prices boosted export earnings and foreign exchange inflows for oil-producing economies such as Nigeria and Angola.
It said the increased revenues helped offset some of the pressure on their currencies, unlike countries that depend heavily on imported fuel and other energy products, which faced greater pressure from rising energy costs.
The World Bank also said the currency sell-off across several African markets was driven by stronger demand for the US dollar, capital outflows from emerging and frontier markets, and concerns over the rising cost of servicing dollar-denominated debt.
