Naira vs. Cedi vs. Rand: How Nigeria’s Currency Performed Against African Peers in 2025

Sanusi2 weeks ago

0 9 2 minutes read

As we wrap up the financial year and head into 2026, the Nigerian Naira (NGN) has been a subject of intense scrutiny. However, to truly understand the Naira’s health, we must look beyond the US Dollar and see how it fares against its continental “siblings”—the Ghanaian Cedi (GHS) and the South African Rand (ZAR).

The year 2025 was a year of “The Great Rebound” for some and “Continued Struggle” for others.

1. Naira vs. Ghanaian Cedi (NGN/GHS)

Ghana and Nigeria often share similar economic patterns. In 2025, the Ghanaian Cedi faced significant pressure due to debt restructuring and inflation.

Performance: The Naira managed to gain some ground against the Cedi. While 1 Cedi was worth significantly more at the start of the year, the stability of the Naira in the second half of 2025 saw the exchange rate balance out at approximately 1 NGN to 0.0072 GHS by December 31st.
The Verdict: The Naira showed more resilience in late 2025 compared to the Cedi, largely due to Nigeria’s rising foreign reserves which hit $45.48 billion.

2. Naira vs. South African Rand (NGN/ZAR)

The South African Rand remains one of the most traded and volatile currencies on the continent. In 2025, the Rand benefited from a global surge in gold and platinum prices.

Performance: The Rand maintained a position of strength over the Naira. Currently, the exchange rate sits at approximately 1 Rand to ₦78 – ₦82.
The Verdict: South Africa’s more diversified economy gave the Rand an edge. However, the gap is narrowing as Nigeria’s inflation drops to 14.45%, making the Naira more attractive for intra-African trade.

3. Comparison with West African CFA Franc (XOF)

For our neighbors in the Francophone region, the CFA Franc (pegged to the Euro) remained very stable. The Naira has stabilized against the CFA at around 1 NGN to 0.38 XAF. This stability is crucial for cross-border traders in markets like Cotonou and Maradi.

Why This Matters for 2026

The African Continental Free Trade Area (AfCFTA) is gaining momentum. For Nigerian businesses to thrive, the Naira needs to remain stable against these regional currencies.

Stability = Trade: A stable Naira makes Nigerian exports (like cement and petroleum products) more predictable in price for buyers in Ghana and South Africa.
Investment: Investors are looking at Nigeria as a “recovery play.” If the Naira continues to outperform the Cedi, we could see more West African capital flowing into the Nigerian Exchange (NGX).