Last updated on February 20th, 2024 at 08:05 pm
The naira started facing its toughest time, falling freely immediately after the Bola Tinubu-led government announced the floating of the Nigerian currency in June 2023.
Right now, it is $/1,790 at the parallel market, and $/₦1,574.62 at NAFEX at the close of trading on February 20, 2024.
The naira has lost its value, but there are still some other currencies in Africa that are even weaker than the Nigerian currency.
NGN1 is worth 12.30 SLL while it is 1.73 in Congolese Franc, this points to the fact that Naira is still stronger than some currencies in Africa.
Congolese Franc, Leonean Leone, Tanzania Shillings, Malagasy ariary, Uganda Shillings, Burundi Franc, Malawian Kwacha, and Rwanda Franc (RWF) are the weakest African currencies against the Naira in 2024.
The list of weaker currencies against the Nigerian currency is a pointer that the currencies of the countries under review are in more terrible shape than the naira.
Worst-performing currencies than the naira
Sierra Leonean Leone (SLL)
The official currency of Sierra Leone is Sierra Leonean Leone which is the weakest currency in Africa and the most worthless when compared with global currencies.
1 SLL is NGN0.033. NGN500K is worth 19,300,724.83 SLL while $500K is worth over 7 billion in the country’s local currency.
Congolese Franc (CDF)
The Congolese franc (CDF) is the official currency of the Democratic Republic of Congo popularly called DR Congo
1 CDF at the time of this is 21 kobo, meaning, NGN5,000 is worth 24, 237.83 CDF while NGN1 million is worth 4,847,565.29 in DR Congo.
Tanzania Shillings (TZS)
TZS/NGN is 19 kobo. NGN5k is worth 26,562.72 Tanzanian shillings. When TZS is paired against the Nigerian currency, the naira does better.
But on the global stage, they are worthless as it is very rare to see any global trader who would want to accept NGN or TZS as a means of exchange.
Uganda Shillings (UGX)
Uganda shillings is one of the African currencies that is weaker than the Nigerian naira. UGX/NGN is NGN0.12. Coins have even been faced out of the market in Nigeria.
Madagascar Malagasy ariary (MGA)
While the naira continues to slide against global currencies for international trade, NGN500K is worth 4,845,688.08 MGA.
Regionally, the naira still has some weight, but our report on some of the African currencies that are stronger than the naira also shows that Nigeria priding itself as the giant of Africa is deceitful.
Malawian Kwacha (MWK)
MWK/NGN is 43 kobo
Rwanda: Franc (RWF)
Despite Paul Kagame’s revolutionary economic policies in Rwanda, the country still has a lot of things to fix years after the dark days of genocide in the country.
RWF/NGN is NGN0.41 at the time of this publication.
It is important to note that Rwanda’s health policy is one of the best on the continent. It follows a universal healthcare model.
Burundi Franc (BIF)
BIF=With BIF/NGN going for NGN0.27, the Burundian franc is weaker than the naira
Below is the summary of African currencies that are weaker than the Nigerian currency using the official exchange rate
|Weakest African currencies
|Naira To The Local Currency
|Rwanda: Franc (RWF)
Currencies that gained over Naira in 2023
Naira had value over some currencies in Africa, but there was a twist, Naira fell further when the biggest economy announced the floating of its currency. The country says it would no longer peg its currency.
After the floating, these African currencies gained significantly over the naira:
- Gabon XAF to Naira
- Chadian XAF
- Benin Republic XOF
- Republic of the Congo XAF
- West African CFA franc
- Comorian Franc
- Somalian Shillings
- Central African CFA franc
- Ivoirean currency (XOF)
- South Sudanese Pound
While it’s true that the naira is stronger than some currencies in Africa, this alone doesn’t necessarily indicate that the Nigerian currency is superior.
Various factors, such as economic stability, inflation rates, and overall financial health, contribute to a currency’s strength or weakness.
If Nigeria had visionary, selfless, and economically savvy leaders, it seems plausible that many African countries would have adopted the Nigerian currency by now.
For instance, high inflation in Nigeria is causing some of its denominations to become increasingly obsolete; for example, the NGN5 note can hardly buy biscuit anymore.
Above all, while the naira isn’t the lowest-valued currency in Africa, the fact that the currency of a country that prides itself as the African giant struggles to compete with other global currencies indicates that all is not well with the Nigerian economy.
The comparison highlights the precarious state of many economies in Africa and their currencies, signaling an urgent need for remediation.
Africa, as a whole, has yet to attain financial and economic independence, often finding itself at the mercy of its former colonial leaders.