Naira Depreciates to ₦1,855 Per Pound as Sterling Gains Strength

By Benson Daniel

The Nigerian naira weakened further against the British pound, falling to ₦1,855 per pound in the foreign exchange market as the sterling continued to strengthen on the back of improving economic sentiment and renewed investor confidence in the United Kingdom.

The latest movement reflects sustained demand for the British currency by businesses, importers, students and travellers with financial obligations in the UK. Currency dealers said the increased appetite for foreign exchange, combined with pressure on the naira, contributed to the widening exchange rate between the two currencies.

Market analysts attributed the pound’s appreciation to expectations that the UK economy will remain resilient despite global economic uncertainties. Stronger economic data, stable inflation trends and optimism over the Bank of England’s monetary policy outlook have supported demand for the sterling in international currency markets.

For Nigeria, the depreciation of the naira against the pound is expected to increase the cost of tuition, medical expenses, travel and imports from the United Kingdom. Businesses engaged in cross-border trade may also experience higher operating costs as exchange rate fluctuations continue to affect foreign currency transactions.

Economists noted that exchange rate movements remain heavily influenced by foreign exchange supply, investor confidence, global capital flows and domestic economic conditions. They stressed that sustained improvements in foreign exchange earnings through increased exports, higher oil production and stronger non-oil revenue would be essential to stabilising the naira over the long term.

The Central Bank of Nigeria has continued to implement measures aimed at improving liquidity in the foreign exchange market and promoting greater transparency in currency trading. Analysts believe these reforms, alongside broader fiscal and monetary policies, could help moderate exchange rate volatility if supported by improved external reserves and stronger investor confidence.

Financial experts expect the naira to remain sensitive to both domestic and global economic developments in the near term. They say the direction of international interest rates, crude oil prices and foreign investment inflows will continue to play a significant role in determining the performance of the local currency against major global currencies, including the British pound.