The British Pound falls as the naira strengthens to ₦1,825 per £1 amid UK political uncertainty, reflecting volatility in the GBP to NGN exchange rate.
The Nigerian naira strengthened against the British pound on the foreign exchange market as political uncertainty continued to cloud the UK economy. The pound traded at about N1,825/£1, highlighting the naira’s recent gains. Since the start of the year, the local currency has appreciated by roughly 7 percent against the British currency.
The positive momentum comes as Nigeria continues to record stronger foreign exchange inflows. In addition, the Central Bank of Nigeria has maintained its tight monetary policy stance, keeping the Monetary Policy Rate at 26.5 percent. This has helped attract investor confidence and support the naira.
Furthermore, the successful clearance of foreign exchange backlog obligations encouraged foreign portfolio investors to return to Nigerian debt markets. Higher crude oil production and stronger global energy prices have also boosted foreign reserves. At the same time, remittances from Nigerians abroad continue to provide a steady supply of foreign currency.
Another key factor is the growing impact of the Dangote Refinery. With local refining capacity increasing, Nigeria now relies less on imported fuel. As a result, pressure on foreign exchange demand has reduced, helping to strengthen the naira further.
Meanwhile, the British pound remains under pressure. Political tensions in the United Kingdom have unsettled investors and weakened market confidence. Softer inflation data has also reduced expectations of aggressive interest rate hikes from the Bank of England. Consequently, the pound slipped below the $1.32 mark against the US dollar, with analysts warning that continued political and economic uncertainty could keep Sterling on the defensive.
