Naira Breaks Below N1,500 Against Euro For First Time Since 2024

Nigerian Naira currency notes and Euro currency notes side by side, symbolizing the exchange rate.

AFRICAN BUSINESS AND ECONOMYOctober 5, 2026 at 7:37 AM UTC

TLDR

Naira closed at N1,497 per Euro, breaching the N1,500 resistance level.
This marks the first time since April 2024 the Naira has strengthened to this extent against the Euro.
The move is influenced by Eurozone political instability and Nigeria's foreign exchange reforms.

Nigeria's currency, the Naira, recently broke below the N1,500 mark against the Euro for the first time since April 2024. This occurred as the European currency declined to its weakest level against the US dollar since May 2025, according to data from the Central Bank of Nigeria. The Naira closed at N1,497 per Euro, surpassing a significant resistance level.

Before April 2024, the exchange rate had remained below N1,000 per Euro for most of 2023, indicating a stronger Naira. However, following substantial foreign exchange market reforms and a devaluation in 2024, the rate rallied above N1,500 per Euro, reaching as high as N1,800. The EUR/NGN pair has since declined from levels near N1,684 per Euro late last year to its current N1,497.

In the official Nigerian Foreign Exchange Market (NFEM), the Naira has maintained a relatively narrow band of N1,327 to N1,330 per US dollar. This stability is supported by central bank liquidity injections and stable foreign reserves. Meanwhile, the US dollar has predominantly traded between N1,370 and N1,390 in the parallel market, with recent movements indicating a narrowing spread between official and parallel rates, deterring arbitrage.

The Naira has effectively appreciated against the Euro because its value is strongly correlated to the US dollar in Nigeria’s foreign exchange market. When the Euro depreciates against the dollar, cross-rates adjust, making euro-denominated transactions more costly and leading to Naira appreciation against the Euro. Speculative demand has also been mitigated through the CBN’s foreign exchange reforms, monetary policy tightening, and increased transparency within official currency windows.

Increased utilization of Nigeria’s domestic refining capacity, particularly the Dangote Refinery, has reduced the country’s foreign exchange expenditure on importing petroleum products, conserving reserves. Additionally, robust trade performance, driven by strong agricultural exports and high crude oil prices, has supported Nigeria's forex surplus with the Eurozone. The Naira has maintained key moving averages, suggesting a more stable short-to-medium-term trend, with continued inflows and tighter liquidity controls expected to sustain this.

Key Takeaways

The recent appreciation of the Naira against the Euro, pushing it below N1,500/€ for the first time since April 2024, is primarily a reflection of broader global currency dynamics rather than a direct strengthening of the Naira against all major currencies. The Euro's depreciation to its weakest level against the US dollar since May 2025 is a key driver, influenced by rising investor concerns over political and fiscal instability in the Eurozone, particularly France's upcoming election. Given the Naira's strong correlation to the US dollar in Nigeria's foreign exchange market, a weaker Euro against the dollar naturally leads to the Naira appreciating relative to the Euro, even if its value against the dollar remains stable. This cross-rate adjustment makes euro-denominated transactions more expensive. Domestically, the Central Bank of Nigeria's foreign exchange reforms, including liquidity injections, monetary policy tightening, and increased transparency in official currency windows like NAFEM, have played a crucial role in stabilizing the Naira against the dollar, maintaining it within a narrow band of N1,327/$ to N1,330/$. These measures have also helped mitigate speculative demand and narrow the spread between official and parallel market rates. Furthermore, macroeconomic factors such as the increased utilization of the Dangote Refinery, reducing petroleum import costs, and robust trade performance from agricultural exports and high crude oil prices, contribute to conserving foreign exchange reserves and supporting Nigeria's forex surplus with the Eurozone, underpinning the Naira's more stable short-to-medium-term trend.

Naira

Euro

Exchange Rate

CBN

Foreign Exchange

Nigeria

Dangote Refinery

Monetary Policy