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How President Tinubu Dastardized the Value of the Naira in Record Time.
By Ramalan Musa
The Nigerian Naira has had a long history of depreciation, but no period in the last 64 years of Nigeria’s existence can compare to the speed and scale of collapse witnessed under President Bola Ahmed Tinubu. Within 12 months of his administration, the Naira lost more value than it did in several decades combined. This rapid devaluation has not only eroded purchasing power but has also deepened poverty, inflation, and public distrust in economic governance.
For context, the Naira’s fall was once slow and gradual. At independence in 1960, the Naira was stronger than the US Dollar. It took 26 years, from 1960 to 1986, for the Naira to depreciate from less than ₦1/$1 to ₦2/$1. That is an average loss of less than 4 kobo per year. In the next 37 years, from 1986 to 2023, under military and civilian governments, various reforms, SAP, recessions, and oil shocks pushed the Naira from ₦2/$1 to ₦460/$1. That is a depreciation of ₦458 over 37 years, an average of about ₦12.4 per year. These periods, though difficult, still allowed for adjustment, planning, and relative stability in prices.
That pattern was shattered in 2023-2024. Within just one year of President Tinubu’s administration, the Naira moved from ₦460/$1 to ₦1460/$1. To put this in perspective, what took 26 years to achieve was undone in 1 year. What took 37 years to achieve was tripled in 1 year. The Naira lost ₦1000 in 12 months, which is more than ₦83 lost per month on average. This collapse followed two major policy decisions announced in May-June 2023: the removal of fuel subsidy and the “floating” or unification of the exchange rate. While both policies were defended as necessary reforms, their implementation lacked sequencing, safety nets, and FX liquidity to cushion the shock.
The immediate effect of dastardizing the Naira was a cost-of-living crisis. Because Nigeria is import-dependent, the exchange rate feeds directly into the price of fuel, food, medicine, school fees, and raw materials. Food inflation crossed 40% in 2024, pushing millions more Nigerians into poverty. Manufacturers who rely on imported inputs saw costs triple, and many SMEs closed. Civil servant and private sector salaries remained stagnant while prices doubled, effectively cutting real wages by more than half. The speed of the fall also created panic buying of dollars and further pressure on the Naira, creating a vicious cycle and a loss of confidence in the currency.
Critics argue that the administration prioritized fiscal optics over human impact. Floating the Naira without sufficient dollar inflows from exports, remittances, or foreign investment meant the market was left to speculators. Removing subsidy without mass transit, social protection, or refinery output meant Nigerians paid the full cost instantly. Unlike the gradual depreciations of the past which gave the economy time to adapt, the 2023-2024 devaluation was abrupt, poorly communicated, and without buffers. That is why many describe it as the “dastardization” of the Naira, the deliberate or negligent destruction of its value within a very short period.
The data is stark. ₦1 to $1 took 26 years to become ₦2. ₦2 to $1 took 37 years to become ₦460. ₦460 to $1 took 1 year to become ₦1460 under President Tinubu. Whether intended as reform or not, the outcome is the same: the fastest, deepest erosion of the Naira in Nigeria’s history. For millions of Nigerians, this is not an economic theory. It is empty markets, higher transport fares, and a currency that no longer stores value. Unless urgent steps are taken to stabilize the Naira through increased production, FX inflows, and targeted relief, this one-year collapse will define the economic legacy of this administration.
