The Nigerian naira has once again made headlines for all the wrong reasons. According to data published through Forbes currency converter and aggregated by Business Insider Africa and CediRates, the naira is now ranked as the 9th weakest currency in Africa as of mid-2025. This ranking reflects the severe pressure Nigeria’s local currency has faced in recent months amid economic challenges, policy shifts, and foreign exchange shortages.
📉 A Worrying Position for Africa’s Largest Economy
Nigeria holds the position of Africa’s most populous nation and one of its largest economies, heavily driven by oil exports, imports, and a vibrant informal sector. However, its currency has not reflected the strength of its economic potential.
In the latest currency ranking, countries like Sierra Leone, Democratic Republic of Congo, and Guinea topped the list of the weakest currencies, with Nigeria sitting in the 9th position. This ranking is based on the exchange rate between the local currency and the US dollar, where a weaker currency implies that more units of the local currency are needed to buy a single US dollar.
As of June 2025, the exchange rate averaged ₦1,553.68 to $1, marking a sharp depreciation compared to the previous year. This dramatic fall in value has impacted importers, businesses, and ordinary citizens alike.
💱 What the Ranking Actually Means
Being ranked among the weakest currencies does not necessarily mean that Nigeria’s economy is the worst in Africa. Instead, it indicates that the exchange rate value of the naira is very low relative to the US dollar.
In Nigeria’s case, this is the result of a combination of factors, including:
- Persistent foreign exchange scarcity, which makes it difficult for businesses and individuals to access dollars through official channels.
- High inflation, which erodes the purchasing power of the currency.
- Heavy reliance on imported goods, from fuel to machinery to everyday consumer items.
- Policy changes, such as the decision by the Central Bank of Nigeria (CBN) to float the naira in 2023, which removed artificial support and exposed the currency to market forces.
These factors have created a cycle where the naira continues to lose value, further worsening inflation and increasing the cost of living.
📊 Historical Context
The naira’s journey has been turbulent. In the 1980s and early 1990s, the currency held more value against the US dollar, supported by oil revenues and government controls. However, mismanagement, corruption, and economic shocks gradually weakened it over the years.
The most dramatic declines have happened in recent times. In June 2023, the government unified multiple exchange rates, causing an instant depreciation from around ₦460/$ to over ₦750/$. By 2024, the naira had lost more than 40% of its value in one year, according to the World Bank’s “Africa’s Pulse” report.
The ranking by Forbes-sourced data is, therefore, a continuation of this trend rather than an isolated event.
🏦 Policy Moves and Economic Reactions
The Central Bank of Nigeria has been under pressure to stabilize the currency while also controlling inflation. Earlier in September 2025, the CBN cut the benchmark interest rate for the first time in five years, reducing it by 0.5 percentage points to 27%.
While this was aimed at stimulating economic activity, analysts have expressed concern that lower interest rates could put additional pressure on the naira, especially if foreign investment inflows remain low.
The government has also made efforts to boost non-oil exports, ban the export of raw shea nuts to grow local industries, and seek more foreign direct investment. However, the impact of these policies may take time to reflect on currency stability.
🧍 Impact on Nigerians
For everyday Nigerians, the weakness of the naira is felt in almost every aspect of life:
- Imported goods become more expensive, pushing up prices of fuel, electronics, vehicles, and even basic food items.
- Tuition and foreign travel costs skyrocket, making it difficult for students and travelers to meet obligations abroad.
- Businesses struggle to import raw materials or settle foreign transactions, leading to reduced productivity and sometimes job cuts.
The depreciation also fuels inflation, making life tougher for millions who already face stagnant wages and rising living costs.
🌍 How Nigeria Compares to Other African Countries
Interestingly, while Nigeria ranks 9th on the list of weakest African currencies, some smaller economies have managed to keep their currencies relatively stable. For example, the Botswana Pula and Moroccan Dirham remain among the strongest on the continent. This highlights the importance of sound monetary policies, export diversification, and stable political environments in maintaining currency strength.
Meanwhile, countries such as Zimbabwe and Sierra Leone continue to battle hyperinflation and severe currency depreciation, topping the list of weakest currencies.
📝 Conclusion
The ranking of the naira as the 9th weakest currency in Africa serves as both a wake-up call and a reflection of Nigeria’s economic realities. While the government has initiated several policy measures aimed at stabilizing the economy, the effects will take time.
Experts emphasize the need for consistent economic reforms, reduction in import dependence, diversification of revenue sources, and improved governance to strengthen the naira in the long term.
For now, Nigerians continue to navigate a challenging economic environment where their currency buys less and less each day. Whether the naira can recover its value will depend on bold policy actions, increased production, and sustainable economic growth.
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