The Nigerian naira emerged as one of the more resilient African currencies during the second quarter of 2026, despite a broader wave of exchange rate pressure triggered by geopolitical tensions and elevated global energy costs, according to the World Bank.
Key Highlights of the Report:
- Quarterly Resilience: While several currencies across Sub-Saharan Africa suffered sharp depreciations between March and June, the naira experienced a relatively mild decline before stabilizing.
- August Recovery: By August 2026, the naira regained ground, strengthening by 1.9% from its earlier low points.
- Outperforming Regional Peers: The recovery surpassed that of several neighboring economies:
- Ghana’s Cedi: Remained 2.5% below its end-February levels by August.
- Ugandan Shilling: Down 3.1% over the same period.
- South Sudanese Pound: Recorded a drop of 5.5%.
- Policy Recommendations: The World Bank emphasized that Nigeria must sustain its macroeconomic structural reforms and build stronger official reserves/buffers to protect these financial gains and curb inflationary pressures moving forward.
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