The Nigerian Naira Not Among 10 Africa’s Strongest Currencies

Many countries in Africa have currencies that are worth a lot compared to the American dollar. In 2026, the Tunisian Dinar is the strongest in Africa. Libya, Morocco, Ghana, Botswana, Seychelles, Eritrea, South Africa, and Eswatini also made the top ten list.

But Nigeria is not on this list. The Naira, Nigeria’s currency, has been struggling for many years. So what went wrong, and how can the Naira become strong again?

For a long time, Nigeria had two different exchange rates. This meant some people got dollars cheaply while others paid much more. The Central Bank of Nigeria (CBN) governor, Mr. Olayemi Cardoso, recently explained that this foreign exchange subsidy actually hurt the economy more than the fuel subsidy. Ogun State Governor Dapo Abiodun agreed, saying this system made people lose confidence in the Naira.

When President Bola Tinubu took office in May 2023, his government made big changes. They removed the fuel subsidy and unified the exchange rate. This meant the Naira was suddenly worth much less, dropping from around N460 to over N1,500 per dollar. It was painful, but many experts say it was necessary.

Now there is good news. The Naira is getting stronger. In February 2026, it traded at about N1,351 at the official market. Nigeria’s external reserves have climbed to $47 billion, the highest in nearly eight years. The CBN says net reserves have reached $49 billion.

Inflation has also come down. It peaked at over 34 percent but dropped to around 14.5 percent. Mr. Cardoso said people are no longer afraid to hold the Naira, and you can now use your Naira card to pay for things abroad.

But not everyone is so sure. Economist Bismarck Rewane projects the Naira could weaken to N1,640 per dollar by the end of 2026. He warns that the gap between official and black market rates is widening again, which is a sign of pressure.

The government has big plans. They want external reserves to reach $51 billion this year. The 2026 budget predicts the Naira will stabilize at N1,400 per dollar. But the Nigerian Economic Summit Group warns that the next 18 months are critical. If reforms continue, growth could reach 5.5 percent. If they stall, the Naira could fall beyond N1,650.

So how does the Naira become strong again? Experts say Nigeria must fix its structural problems. The country relies too much on oil. Manufacturing grew only 1.5 percent in 2025, which is very slow. Power supply is unreliable, and security challenges scare away investors.

Mr. Cardoso says the CBN will protect the value of the Naira and stick to its reforms. But he also warned that the 2027 election cycle could bring new risks. Elections often mean more spending and more liquidity, which can weaken the currency.

The truth is, a strong currency does not come from government orders. It comes from a strong economy. When Nigeria produces more goods, exports more, and attracts more investors, the Naira will naturally grow stronger.

For now, the naira is on the mend. It gained 7.5 percent in 2025, its first yearly gain in thirteen years. That is a small but important step. With discipline, patience, and the right policies, many Nigerians believe the Naira can one day return to the list of Africa’s strongest currencies.