Nigeria’s Director-General of the Budget Office of the Federation, Tanimu Yakubu, has attributed the naira’s recent rebound to higher oil receipts, strong diaspora remittances, and the clearance of foreign exchange (FX) backlogs, crediting President Bola Tinubu’s reforms for stabilizing the local currency.
In a statement released on Saturday, Yakubu said the government’s bold move to unify multiple exchange windows in 2024 was a turning point, despite triggering initial panic.
“When the administration scrapped multiple exchange rates in 2024, the naira initially depreciated sharply to as low as N1,800 per dollar in March. Many called it a ‘worthless naira’ and predicted collapse. But what seemed like a crash was in fact a reset—a deliberate recalibration of our forex market,” Yakubu explained.
By August 2025, the naira had recovered to around N1,525 per dollar, marking a 15.28 percent gain in just five months. Yakubu said this recovery was driven by three key factors: rising crude oil earnings, a surge in diaspora inflows, and the clearance of about $4 billion in outstanding FX backlogs.
He noted that the Central Bank of Nigeria (CBN) had earlier announced the clearance of $1.5 billion in valid backlogs in March 2024, while a forensic audit conducted by Deloitte revealed that $2.4 billion of the initially reported $7 billion liabilities were invalid.
Yakubu stressed that the forex reforms repositioned the naira from a weakness into a “tool of competitiveness.” According to him, a realistic exchange rate boosted Nigeria’s export sector.
“With a realistic naira, our cocoa, sesame, and even processed chocolate became cheaper in New York, Mumbai, or São Paulo, without local producers earning less,” he said.
READ ALSO: Naira slips to N1,583/$ at official market amid forex reserve dip, BDC recapitalization pressure
Budget Office data 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 climbed from 3.83 million metric tonnes to 4.04 million metric tonnes, demonstrating stronger demand rather than just higher prices.
Yakubu described this as a “sweet spot” for the economy. “Exporters earned more in naira, foreign buyers paid less in dollars, and the economy benefited from stronger inflows. This is a virtuous cycle that strengthens itself.”
Economists and financial analysts have weighed in on the Budget Office DG’s remarks.
Dr. Bismarck Rewane, CEO of Financial Derivatives Company, noted that the naira’s rebound was not accidental but the product of tough reforms.
“The clearance of FX backlogs restored investor trust. For years, investors stayed away because they couldn’t repatriate funds. Now, that confidence is gradually returning.”
Professor Uche Uwaleke, Nigeria’s first professor of capital markets, agreed but urged caution. “The rebound is encouraging, but sustainability depends on fiscal discipline. Oil earnings helped, but Nigeria must keep boosting non-oil exports to cushion against oil price volatility.”
London-based economist and Africa markets analyst, Yvonne Okeke, added that the currency’s recovery has improved Nigeria’s perception in international markets. “Portfolio investors are testing the waters again. However, the real test will come if global oil prices fall or if diaspora inflows slow.”
Yakubu insisted that the reforms have transformed the naira into a growth driver, not just a unit of exchange. “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.”