Naira Exits Africa’s Top 10 Worst Currency Rankings After 2 Years as Appreciates Against Dollar
- The naira gained 0.39% against the dollar on the black market at the close of Friday’s trading
- The appreciation comes amid rising external reserves and improved FX liquidity conditions
- Naira performance has helped it exit Africa’s list of 10 worst-performing currencies after nearly two years
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian currency, the naira, recorded a modest gain against the US dollar in the foreign exchange market at the end of the five trading days on Friday, January 2, 2026.
According to data from the Central Bank of Nigeria, the naira closed Friday trading in the official market at N1,430/$, a rise from N1,435/$ the previous day.
Source: Getty Images
It was the same scenario for the naira in the black market against the US dollar.
Legit.ng spoke to several Bureau de Change (BDC) operators, who confirmed that the naira appreciated in the black market.
Abudullahi, a BDC trader, told Legit.ng:
"The dollar buying rate is now N1,470, while the selling rate is N1,475. Previously we sell dollar at N1480."
Naira exits Africa’s worst currency rankings
Meawhile, Nigeria’s currency performance towards the end of 2025 has helped it outside Africa’s 10 worst-performing currencies ending nearly two years on the bottom-ten list.
An analysis using the Forbes currency calculator shows that naira exited the list in October 2025 and had not reappeared as of December, supported by improving external reserves, policy reforms and better FX liquidity.
Although Nigeria’s exact ranking was not disclosed, data indicate that by December 31 the naira traded at about N1,436 per dollar, compared with the Rwandan franc at 1,456 per dollar, which ranked 10th weakest.
This suggests the naira likely finished the year among Africa’s 15th to 20th weakest currencies, BusinessDay reports.
Central Bank of Nigeria (CBN) data show the naira appreciated 6.5% year-on-year, strengthening from N1,535.82 at the same period in 2024.
Source: Getty Images
List of africa’s weakest and strongest currencies
Forbes data revealed that São Tomé and Príncipe’s dobra was Africa’s weakest currency last year, trading at 22,282 per dollar, followed by Sierra Leone’s leone, the Guinean franc, Malagasy ariary, and the Ugandan shilling. Other weak currencies included the Burundian franc, Tanzanian shilling, Congolese franc, Malawian kwacha, and Rwandan franc.
On the stronger end, Africa’s most resilient currencies were led by the Tunisian dinar, Libyan dinar, Moroccan dirham, Ghanaian cedi, and Botswanan pula.
There are expectations that the naira will continue its positive performance in 2026, as Nigeria’s external reserves rose to $45.48 billion as of December 30, 2025, the highest level in six years, up from $40.88 billion a year earlier.
Citibank projects naira exchange rate in 2026
Earlier, Legit.ng reported that the naira has been projected to weaken between N1,650 and N1,700 in mid-2026, due to expected pressure driven by lower crude oil prices and new monetary easing cycle.
This is the view of David Cowan, Citibank African economist, in a note to clients.
He said the outlook is due to the CBN’s expected monetary easing and a possible decline in crude oil prices.
Source: Legit.ng
