The naira weakened to N1,376 per dollar on Monday as the U.S. currency rallied globally following renewed geopolitical tensions in the Middle East.
Data obtained from the Central Bank of Nigeria (CBN) showed the local currency depreciated from N1,368.5 per dollar recorded on Friday.
The decline comes as investors flocked to the dollar after U.S. strikes on Iran triggered a fresh safe-haven rush, strengthening the greenback across global markets.
The dollar index climbed nearly 1% on Monday, marking its strongest single-day gain in seven months as investors sought safety.
The renewed rally has helped restore the dollar’s traditional role as a crisis-era hedge after months of skepticism about its safe-haven appeal. Against this backdrop, emerging market currencies, including the naira, came under pressure.
What the data is saying
CBN data shows the naira depreciated to N1,376 per dollar on Monday from N1,368.5 per dollar at the close of trading on Friday.
- The currency traded between N1,397 per dollar and N1,368.5 per dollar during Monday’s session.
- The simple mean average exchange rate stood at N1,378.48 per dollar.
- On February 2, 2026, the naira closed at N1,384.5 per dollar compared to N1,391 per dollar on January 30, 2026.
- On that same February 2 trading day, the currency fluctuated between N1,396 per dollar and N1,381 per dollar, with a simple mean average of N1,390.54 per dollar.
The latest movement reflects short-term volatility influenced by global dollar strength rather than a fundamental shift in domestic foreign exchange conditions.
Get up to speed
The U.S. dollar’s sharp rally follows renewed geopolitical tensions after U.S. strikes on Iran, which prompted investors to increase holdings of safe-haven assets.
For much of the past year, analysts questioned whether the dollar would maintain its traditional crisis-era strength after it failed to rally during a tariff-induced global market selloff.
- The dollar index gained nearly 1% on Monday, its best performance in seven months.
- The renewed surge has reassured investors of the currency’s global safe-haven status.
The stronger dollar environment typically tightens global financial conditions, which can weigh on currencies such as the naira.
More Insights
Despite recent exchange rate pressures, Nigeria’s external reserve position has strengthened significantly over the past year, according to the CBN Governor, Olayemi Cardoso.
- Net foreign exchange reserves rose from $23.11 billion at the end of 2024 to $34.80 billion at the end of 2025.
- This represents an increase of $11.69 billion within one year.
- Gross external reserves increased from $40.19 billion at end-2024 to $45.71 billion at end-2025.
- As of February 16, 2026, gross reserves had further climbed to $50.45 billion.
The improved reserve position reflects stronger external liquidity buffers and provides the central bank with more capacity to manage currency volatility when needed.
What you should know
Nairametrics reports that the naira ended February 2026 at N1,368.5/$ in the official market, up from N1,384.5/$ at the start of the month, reflecting a modest month-on-month appreciation.
CBN data shows that despite late-month volatility, the currency maintained a firmer position relative to January.
