Mkpoikana Udoma
Port Harcourt — The Director-General of the Budget Office of the Federation, Tanimu Yakubu, says President Bola Ahmed Tinubu’s bold foreign exchange reforms have transformed the naira from a symbol of weakness into an engine for export-led growth, driving up Nigeria’s non-oil exports and restoring investor confidence.
Yakubu, who spoke on the impact of the 2024 currency unification policy, said the floating of the Naira, though initially painful, had repositioned the economy for long-term competitiveness.
“When President Tinubu dismantled Nigeria’s rigid foreign exchange regime in 2024, critics called it a currency collapse. But what they missed is that a floating currency is not a sign of weakness — it is a tool for national competitiveness,” he said.
The DG recalled that the Naira initially plunged to N1,800/$1 in March 2024, sparking fears of an economic meltdown. However, by August 2025, the local currency had clawed back to N1,525/$1 — a 15.28 percent strengthening in just five months.
“This wasn’t luck; it was policy. Increased oil receipts, swelling diaspora remittances, and the clearing of over $4 billion in FX backlogs restored investor trust. The unification of Nigeria’s FX windows created a single, transparent market rate, finally letting the naira find its realistic value,” Yakubu explained.
The Budget DG said the reforms had “completely changed the arithmetic of trade,” making Nigerian goods cheaper and more attractive in global markets.
“A bag of sesame seeds, cocoa beans, or even processed chocolate instantly cost less in New York, Mumbai, or São Paulo, without the Nigerian farmer or factory owner earning less in naira terms,” he stated.
Official trade data showed non-oil exports jumped from $2.696 billion in H1 2024 to $3.225 billion in H1 2025, a 19.62 percent year-on-year growth. Export volumes also rose from 3.83 million to 4.04 million metric tonnes.
“This is not just a price illusion. Foreign buyers are not only paying more for the same goods — they are buying more goods, period,” Yakubu stressed.
According to him, the reforms created a “sweet spot” for Nigeria: cheaper dollar prices abroad, higher naira earnings for exporters at home, and stronger FX inflows into the economy.
“The feedback loop is textbook economics: FX reform leads to a realistic naira, cheaper dollar prices, an export boom, more inflows, naira stability, investor confidence, and long-term growth,” he said.
Yakubu added that sustaining the reforms could make the naira “a competitive weapon on the world stage” as Nigeria deepens its transition to an export-driven economy.
“If Nigeria stays the course, this recovery won’t just be about exchange rates — it will be the story of an economy finally learning to use its currency as a tool for growth,” he concluded.
