Naira Becomes Africa’s Best-Performing Currency in 2026, Appreciates 6.7 Per Cent
- The naira stands as Africa’s best-performing currency in 2026, appreciating 6.7% against the dollar
- Nigerian external reserves drop to $48.44 billion, reflecting a 3.16% decline amid thinning forex liquidity
- Currency performance diverges across Africa, influenced by external buffers and policy credibility
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian currency, the naira, has emerged as Africa’s best-performing currency in 2026 despite volatility caused by the Middle East conflict.
According to a report by United Capital, the naira appreciated 6.7% against the dollar year-to-date as of April 24, 2026, relative to depreciations across major African currencies.
Source: Getty Images
Naira outperforms other currencies
The report said that the Kenyan shilling dropped 0.27%, the Angolan kwanza 0.009%, the South African rand at 0.34% and the Ghanaian cedi at 5.30% during the review period.
The report cited Ayodele Akinwunmi, United Capital’s chief economist, as saying that policy reforms and improved forex supply and robust reserves have allowed the Central Bank of Nigeria (CBN) to support the naira, alongside reforms that reduced volatility.
He disclosed that improved oil and non-oil exports and tighter monitoring of forex transactions also helped supply.
Data from the CBN showed that the local currency eased last week as FX liquidity slowed and external reserves fell, leading to the naira shedding N14.57 week-on-week to N1,365.24 per dollar at the Nigerian Foreign Exchange Market (NFEM).
Naira performs mixed across markets
The depreciation represented 1.07% fall from N1,358.44 the previous week.
In the parallel market, the naira steadied at N1,400 per dollar, with the gap between the official rates narrowing to N36 from N42 the previous week.
Nigeria’s external reserves dropped 3.16% to $48.44 billion as of April 23, 2026, down from their height of $50.02 billion in March.
Forex liquidity also thinned as FMDQ data shows total market inflows declined 7% month-on-month to $4.1 billion in March.
Inflows drop, reserves decline
Analysts at Quest Merchant Bank blamed the drop on seasonal factors, citing a similar drop in March last year.
They, however, flagged a sharp contraction in inflows from individuals, which dropped to $22.2 million from $697.8 million the previous month.
The CBN increased intervention, with FX sales rising 112% monthly to $691 million in March.
Exporter inflows continued to be a major source of supply, falling 2 per cent to $770.3 million.
Experts say the naira had already come under pressure in March, depreciating 1.3% monthly to close at N1,387 per dollar, Quest Merchant Bank said.
Remittance inflows dropped sharply, as CBN data shows that remittances fell 46.22% to $107.47 million in January, from $200.31 million in December.
African currencies at a crossroads
According to experts, across Africa, currency performance is diverging, showing differences in external buffers, commodity exposure and policy credibility.
Tunisia’s dinar exchanges at about 2.86 per dollar, Libya's dinar at 6.31, Morocco’s dirham at 9.01, Botswana’s pula at 13.05, and South Africa’s rand at 15.87 per dollar.
Meanwhile, Eswatini’s lilangeni and Lesotho’s loti both stand at 15.90 per dollar.
Source: Getty Images
Naira avoids Africa’s 10 weakest currencies
Legit.ng earlier reported that fresh data released in February 2026 has revealed the 10 weakest currencies in Africa, and, notably, Nigeria’s naira did not feature on the list, despite depreciating recently due to CBN's interventions.
The ranking, compiled using figures from the Forbes currency calculator, highlights countries whose currencies have depreciated sharply against major global currencies such as the US dollar and euro.
While the naira has faced its own challenges in recent years, it was absent from the latest lineup of Africa’s weakest-performing currencies.
Source: Legit.ng
