The Nigerian Naira has experienced a significant weakening against the US Dollar, depreciating to N1,355 per dollar as of Friday, April 24, 2026. This decline in the local currency's value coincides with a notable drop in the country's external reserves, which have fallen to $48.48 billion as of March 22, 2026.

The Naira saw a decrease of N4.53 against the dollar on a day-to-day basis, and a cumulative loss of N14.80 week-on-week in the official foreign exchange market. In the parallel market, the Naira also weakened, trading at N1427 per dollar, reflecting a N26 loss from the previous week.

This weakening trend occurs despite earlier projections by the Central Bank of Nigeria (CBN) that external reserves would climb to $51.04 billion in 2026. However, recent reports indicate a more complex picture. Fitch Ratings had previously projected a decline in Nigeria's foreign exchange reserves to $47 billion by the end of 2026, citing higher spending pressures and external risks. Despite this, the CBN had also stated that reserves were expected to cover seven months of current external payments.

In recent months, external reserves have shown fluctuations. They had reached a 13-year high of $50.45 billion in February 2026, providing cover for approximately 9.68 months of imports. However, by April 9, 2026, reserves had declined to $48.85 billion, raising concerns about sustainability. The latest figures of $48.48 billion as of March 22, 2026, further underscore this downward trend.

Central Bank Governor Olayemi Cardoso had previously expressed confidence in the FX market, noting increased liquidity and a shift towards a more market-driven system. Reforms aimed at enhancing efficiency and transparency in the FX market have also been highlighted as factors to support exchange rate stability.

The average exchange rate for the US Dollar to Nigerian Naira in 2026 has been around N1380.64, with a high of N1446.52 on January 1, 2026, and a low of N1340.00 on February 18, 2026.