President Bola Tinubu has defended the naira's performance under his administration, arguing that the currency would have lost virtually all its value without his government's foreign exchange reforms. Speaking at an All Progressives Congress campaign rally in Akwa Ibom State on Friday, Tinubu dismissed criticism over the naira's depreciation against the US dollar. He described the naira, currently trading at about N1,300 to a dollar, as still valuable and pointed out that the situation could have been considerably worse without the decision to unify Nigeria's multiple exchange rates.
Tinubu announced the unification of Nigeria's foreign exchange rates in June 2023, shortly after taking office. The policy was designed to reform the foreign exchange market and narrow the gap between the official and parallel market rates. Following the announcement, the naira subsequently depreciated sharply, moving from approximately N750 to the dollar to around N1,900 before recovering to its current level of approximately N1,300, according to Tinubu.
The president used stark language to emphasise the scale of the crisis he said would have occurred without intervention. He argued that without the decision to reform the exchange rate system, Nigerians would have needed wheelbarrows to move their naira when making everyday purchases, describing the alternative scenario as one in which the currency would have become essentially valueless. Tinubu's remarks came as he faces ongoing criticism over currency depreciation during his tenure.
The naira's movement reflects the broader challenges Nigeria's economy has faced as the government pursues structural reforms. For savers holding naira, borrowers with naira debts, businesses importing goods and investors in Nigerian assets, the exchange rate directly affects their purchasing power, repayment costs, import expenses and returns.