Tanimu Yakubu, director-general of the Budget Office of the Federation, says President Bola Tinubu’s foreign exchange reforms have repositioned the naira as a tool for competitiveness rather than weakness.
Mr Yakubu, in a statement on Saturday, said that when the administration scrapped the country’s multiple exchange windows in 2024, the naira fell sharply, sparking fears of economic collapse.
He recalled that the currency plunged to N1,800 per dollar in March 2024, with critics describing it as a “worthless naira”.
“However, what looked like a collapse was in fact a reset. It was a deliberate recalibration of our foreign exchange market,” Mr Yakubu said.
According to him, by August 2025, the naira had recovered to N1,525 per dollar, representing a 15.28 per cent gain in five months.
He attributed the rebound to higher oil receipts, strong diaspora remittances, and the clearance of over N4 billion in FX backlogs.
Mr Yakubu said the unification of the FX market was the key step in creating a single transparent rate and restoring investor confidence.
He explained that the impact was most visible in the export sector, where Nigerian goods suddenly became more affordable abroad.
“With a realistic exchange rate, our cocoa, sesame and even processed chocolate became cheaper in New York, Mumbai or São Paulo without local producers earning less,” he said.
Data from the Budget Office showed that non-oil exports rose from $2.696 billion in the first half of 2024 to $3.225 billion in the same period of 2025.
Export volumes also increased from 3.83 million to 4.04 million metric tonnes, confirming that foreign buyers were purchasing more goods, not just at higher prices.
Mr Yakubu described the development as a “sweet spot” for the economy, with exporters earning more in naira terms, buyers abroad paying less in dollar terms, and the economy benefiting from stronger inflows.
He explained, “This is a virtuous cycle. FX reform leads to a realistic naira, which makes our goods competitive. That drives exports, and the resulting inflows strengthen the Naira further.
Mr Yakubu said the reforms had turned the naira into a driver of growth, attracting both trade and investment.
“If Nigeria stays the course, the story of the naira will not be about collapse and recovery but about reinvention, an economy using its currency as an engine of global competitiveness,” Mr Yakubu added.
(NAN)