From 6 Kobo to ₦1,609: The Dramatic Fall of the Naira’s Exchange Rate
The Nigerian Naira (₦), which was previously almost equal to the US Dollar, has experienced significant devaluation over the years.
Starting from₦0.658 for $1 in 1972 up to an astounding₦1,609 for $1 in 2025, the trajectory of the Nigerian currency mirrors significant economic, political, and systemic challenges faced by the country. Here’s a timeline showcasing the depreciation of the Naira throughout various eras marked by their respective leaders and prevailing circumstances:
– From ₦0.658 per dollar in 1972 under President Yakubu Gowon.
– To ₡context shaping this era included oil boom followed by instability.
Continue similarly with subsequent periods…
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1972–1975: General Yakubu Gowon
Exchange Rate: ₦0.658 – ₦0.61
In 1972, during General Yakubu Gowon’s military administration, one US Dollar could be exchanged for merely ₦0.658. The Nigerian currency, the Naira, was robust, supported by revenue from an oil boom and steady foreign exchange reserves. This stability persisted until 1975 with minimal variations in value.
1976–1979: General Olusegun Obasanjo (Military Rule)
Exchange Rate: ₦0.62 – ₦0.59
When Obasanjo took over, he was left with an economically sound environment. Throughout his time as a military leader, the value of the Nigerian naira remained steady at around ₦0.62 to ₦0.59 against one US dollar. The country’s heavy dependence on revenue from oil sales helped maintain the stability of its national currency during these peaceful years.
1979–1983: President Shehu Shagari (Second Republic)
Exchange Rate: ₦0.55 – ₦0.72
When Shehu Shagari assumed the presidency of Nigeria as the nation’s first democratically elected leader post-independence, the value of the Nigerian naira was already starting to decline. Between 1980 and 1983, it went from ₦0.55 to ₦0.72. This gradual erosion can be attributed to falling global oil prices, increasing reliance on imports, and ineffective economic policies.
1984-1985: Major General Muhammadu Buhari (Military Rule)
Exchange Rate: N0.76 – N0.89
Under Buhari’s military administration, a stringent economic policy was implemented. The currency value shifted from ₦0.76 in 1984 to ₦0.89 in 1985. Nigeria faced significant foreign exchange scarcity issues, leading to rigorous enforcement of import limitations aimed at safeguarding national reserves.
1985–1993: General Ibrahim Babangida (Armed Forces)
Exchange Rate: $0.05 – $0.06
During General Babangida’s rule, the Nigerian currency faced its initial significant depreciation. In 1986, after implementing the IMF-supported Structural Adjustment Program (SAP), the value of the naira dropped to ₦2.02 against one dollar, leading to an extended period of decline. When he left office in 1993, the exchange rate had worsened to ₦21.90. Although these policies were intended to deregulate the economy, they inadvertently triggered high levels of inflation and economic volatility.
1993–1998: General Sani Abacha (Army)
Exchange Rate: ₦21.90 – ₦84.70
During the Abacha era, Nigeria experienced both international sanctions and autocratic governance. However, this period was characterized by a regulated exchange system that maintained an ostensibly steady official rate, despite significant increases in parallel market rates. The official rate progressed from ₦21.90 in 1993 to ₦84.70 by 1998.
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1999–2007: President Olusegun Obasanjo (Era of Democracy)
Exchange Rate: N90 – N125
Upon the resumption of democratic rule in 1999, Obasanjo’s administration concentrated on implementing economic reforms and securing debt relief. Nonetheless, the value of the Nigerian currency, the naira, steadily depreciated from ₦90 in 1999 to ₦125 in 2007. Although the regime succeeded in attracting foreign investments, fundamental flaws persisted within the nation’s economy.
2007–2010: President Umaru Musa Yar’Adua
Exchange Rate: ₦120 – ₦154.80
During his short tenure, Yar’Adua’s administration was influenced by fluctuating global oil prices and domestic instability. By 2010, the Naira had depreciated even more, reaching ₦154.80, which mirrored wider economic challenges.
2010–2015: President Goodluck Jonathan
Exchange Rate: N165 – N300
Throughout Jonathan’s tenure as president, the Nigerian currency, the Naira, faced significant fluctuations because of the substantial decline in oil prices starting in 2014. This led to a dramatic depreciation of the currency, which went from ₦165 in 2011 to around ₦300 by 2015, causing issues with inflation and raising worries among international investors.
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2015–2023: President Muhammadu Buhari
Exchange Rate: N300 – N460
During President Buhari’s second term, Nigeria experienced consecutive economic downturns and difficulties with foreign exchange. The Nigerian Naira underwent several devaluations, shifting from ₦300 in 2015 to ₦460 in 2023. Efforts by the government to control the currency value through both authorized channels and informal markets further eroded trust in the naira among the public.
2023–2025: President Bola Ahmed Tinubu
Exchange Rate: NGN 460 – NGN 1,609
In 2023, President Bola Tinubu introduced one of the most significant monetary policy changes in recent years by allowing the Naira to float, thus merging the official and market exchange rates. As a result, the value of the Naira dropped dramatically; it stood at ₦1,483 per dollar by 2024 and further fell to ₦1,609 per dollar by 2025. The objective behind this move was to attract more international investments and phase out an extended period of subsidies. However, the sharp decline in the worth of the Naira underscores underlying unresolved financial instabilities within the economy.
In the last fifty years, the value of the Nigerian naira has plummeted dramatically, reaching its lowest historical level. This decline mirrors Nigeria’s continuous dependence on oil exports, fluctuating economic strategies, insufficient manufacturing infrastructure, and inadequate governmental institutions. Unless comprehensive changes are implemented beyond mere modifications to exchange rates, the future stability of the Naira could continue to be precarious.
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