Naira among Africa’s strongest currencies despite global pressure – World Bank
The World Bank has ranked the naira among Africa’s more resilient currencies in the second quarter of 2026, despite exchange rate pressures triggered by geopolitical tensions, rising energy prices and increased demand for the US dollar.
In its October 2026 Africa Economic Update, the bank reported that the naira depreciated by a maximum of 2.6% between March and June, considerably less than several other African currencies.
Ghana’s cedi recorded the steepest decline among the currencies highlighted, losing up to 10%, while the currencies of South Africa, Lesotho, Namibia and Eswatini weakened by as much as 7.2%.
The Democratic Republic of Congo and Uganda recorded maximum depreciations of 6% and 5% respectively.
The report examined exchange rate movements across 22 African countries outside the CFA franc zone, comparing their performance with levels recorded before the escalation of the Middle East conflict.
By August, the naira had recovered 1.9% from its March-to-June lows, placing Nigeria among countries whose currencies regained ground following the initial market turbulence.
The World Bank attributed the naira’s relative stability partly to Nigeria’s position as a major crude oil exporter.
According to the report, higher global oil prices boosted export earnings and foreign exchange inflows into oil-producing economies, including Nigeria and Angola, cushioning their currencies against external pressures.
However, countries heavily dependent on imported petroleum products experienced greater financial strain as energy costs increased.
The bank identified rising demand for dollars, capital outflows and concerns over foreign debt servicing as additional factors behind currency depreciation across African markets.
Meanwhile, the World Bank raised Nigeria’s economic growth forecast to 4.3% in 2026, compared with an estimated 4% expansion in 2025.
It projected further growth of 4.4% in both 2027 and 2028, citing improved macroeconomic stability, stronger investor confidence and a gradual recovery in private investment.
Despite the encouraging outlook, the bank warned that Nigeria remained vulnerable to global financial instability, prolonged geopolitical tensions, insecurity, climate-related disruptions and fluctuations in crude oil production.
It also identified increased government spending ahead of the 2027 general elections as a potential risk to economic stability.
The World Bank urged Nigeria to sustain economic reforms, strengthen fiscal discipline and build adequate policy buffers to protect recent macroeconomic gains.