Tinubu Defends Naira, Says Currency Would Have Become Worthless Without Forex Reforms

President Bola Ahmed Tinubu has defended the performance of the naira under his administration, arguing that the currency would have become virtually worthless if his government had not introduced foreign exchange reforms.

The President made the remarks on Friday during the All Progressives Congress (APC) presidential campaign rally in Akwa Ibom State, where he responded to criticism over the naira’s depreciation against the US dollar.

Tinubu described the naira’s value at about ₦1,300 to the dollar as evidence that the currency still retained some purchasing value, insisting that the situation could have been significantly worse without the government’s intervention in the foreign exchange market.

He said:

“If we didn’t take a decision on the day I took over, we would be using wheelbarrow to move our naira because it would have been valueless.

“You’re talking of N1,300 to a dollar. Huh, huh, it still has pocketable value. If we had left it, it would have been a wheelbarrow when you go to the tomato market.”

Tinubu was referring to the foreign exchange reforms introduced in June 2023, shortly after he assumed office.

The policy involved unifying Nigeria’s multiple exchange rates in an effort to reduce distortions in the foreign exchange market and narrow the gap between the official and parallel market rates.

Following the reforms, the naira experienced a significant depreciation against the dollar, moving from around ₦750 to approximately ₦1,900 at different points before recovering to lower levels.

Tinubu argued that the currency’s subsequent movement demonstrated why the reforms were necessary, although his comparison with a hypothetical situation in which the government had not introduced the policy remains an assessment by the President.

The naira’s performance has remained a major subject of public debate, particularly because of its impact on the cost of imported goods, fuel, food, production and other essential expenses.

While the government has defended its foreign exchange policy as necessary to correct longstanding market distortions, Nigerians continue to face concerns over purchasing power and the cost of living.