The Nigerian naira, once a symbol of economic promise in a newly independent nation, has endured a relentless descent against the US dollar over decades. From a robust ₦0.75 to $1 during President Shehu Shagari’s tenure in 1979 to a staggering ₦1,517.2 by March 7, 2025, under President Bola Ahmed Tinubu, according to StatiSense data, the currency’s fall mirrors Nigeria’s economic struggles.
While every Nigerian president since Shagari has presided over some degree of naira depreciation, certain leaders stand out for policies that inflicted the most severe damage. However, the naira’s redemption—and Nigeria’s lost glory—lies not in the hands of monetary jugglers at the Central Bank of Nigeria (CBN) but in a bold return to industrialisation, where the nation manufactures what it consumes and exports to the world.
The Early Days: Shagari And Buhari’s Modest Beginnings
When Shagari took office in 1979, the naira was a respectable ₦0.75 to the dollar, buoyed by oil revenues and a relatively stable economy. His tenure saw no significant shift, maintaining this value until 1983.
General Muhammadu Buhari’s first stint as military head of state (1983–1985) nudged the naira slightly to ₦0.90, a modest 20% drop over two years. These early declines were minor tremors compared to the earthquakes that followed, driven by oil dependency and policy missteps.
Babangida: The Structural Adjustment Catastrophe
The naira’s first catastrophic plunge came under General Ibrahim Babangida (1985–1993). Starting at ₦0.90, the currency crashed to ₦21.89 by the end of his eight-year rule — a staggering 2,332% increase in the dollar’s value against the naira.
Babangida’s Structural Adjustment Programme (SAP), imposed in 1986 under pressure from the IMF and World Bank, aimed to liberalise the economy, devalue the naira to boost exports, and dismantle subsidies. Instead, it unleashed hyperinflation, crippled purchasing power, and failed to spark the promised industrial boom. The black market for foreign exchange flourished, and the naira’s value became a political football.
Babangida’s policies mark him as the first major architect of the naira’s ruin, setting a precedent for devaluation without structural gain.
Abdulsalami: A Short But Devastating Blow
General Abdulsalami Abubakar’s brief tenure (1998–1999) delivered another brutal hit. In just one year, the naira fell from ₦21.89 to ₦94.88 — a 333% surge in the dollar’s value.
Coming after General Sani Abacha’s stagnant regime, where the naira held steady at ₦21.89, Abdulsalami’s rapid liberalisation of foreign exchange controls unleashed pent-up market forces. With no time to build economic buffers, his short rule amplified the naira’s vulnerability, proving that even brief policy shifts can wreak havoc when unmoored from a broader vision.
Buhari’s Second Act: A Slow Bleed
Buhari’s return as a civilian president (2015–2023) oversaw a more gradual but still punishing decline. The naira dropped from ₦197 to ₦461.6—an increase of 134% in the dollar’s value over eight years. His administration clung to a managed float, resisted devaluation pressures, and propped up the currency with dwindling forex reserves, often at the expense of economic flexibility. The CBN’s multiple exchange rates fueled speculation and a thriving parallel market, while oil revenue shortfalls and insecurity stifled growth.
Buhari’s reluctance to embrace bold reforms prolonged the naira’s agony, cementing his legacy as a steady destroyer of its value.
Tinubu: The Rapid Devaluation Experiment
President Bola Ahmed Tinubu, in office since May 2023, has presided over the naira’s most dramatic fall yet in absolute terms. From ₦461.6 to ₦1,517.2 by March 2025—a 229% jump in the dollar’s value in under two years—his tenure reflects a radical shift.
Tinubu scrapped fuel subsidies and relaxed forex controls, allowing the naira to float more freely. While intended to attract investment and unify exchange rates, these moves triggered inflation spikes and a cost-of-living crisis. The speed and scale of this devaluation rival Babangida’s era, positioning Tinubu as a contender for the most impactful naira destroyer in percentage terms, though his reforms remain a work in progress.
The Lesser Culprits
Other leaders contributed less spectacularly but still eroded the naira’s worth. Chief Ernest Shonekan and Abacha maintained static rates (₦21.89), freezing economic dynamism. Olusegun Obasanjo (1999–2007) saw a 34% rise in the dollar’s value (₦94.88 to ₦127.55), while Umaru Yar’Adua (2007–2010) and Goodluck Jonathan (2010–2015) oversaw increases of 18% (₦127.56 to ₦150.31) and 31% (₦150.31 to ₦197), respectively.
These increments, while significant, pale beside the seismic shifts under Babangida, Abdulsalami, and Tinubu.
The Real Solution: Re-Industrialisation, Not Monetary Tricks
The naira’s relentless decline exposes a bitter truth: monetary manipulation by the CBN — pegging, floating or tweaking rates — cannot reverse the tide. Nigeria’s economic woes stem from its addiction to oil and imports, a legacy of de-industrialisation that began post-1983.
Babangida’s SAP promised industrial growth but delivered none; subsequent leaders doubled down on consumption over production. Today, Nigeria imports everything from toothpicks to cars, bleeding dollars while exporting little beyond crude oil.
Only re-Industrialisation can save the naira and restore Nigeria’s glory. Imagine thousands of factories – large and small – humming across Lagos, Kano, Kaduna, Port Harcourt, Agbara and Aba, producing goods for local use and export—textiles, electronics, machinery. This would slash import bills, boost forex earnings, and strengthen the naira organically.
South Korea and China transformed their currencies through manufacturing; Nigeria can too. Policies must shift from propping up the naira artificially to incentivising production—tax breaks for factories, reliable power, and export zones. The CBN’s role should be secondary to a national industrial revival.
Conclusion: A Call To Action
Babangida, Abdulsalami, and Tinubu stand out as the presidents whose policies most ravaged the naira, each through aggressive devaluation or mismanagement. Yet, blame is futile without a fix. Nigeria’s path forward lies in making, not buying—rebuilding an industrial base to power economic sovereignty. The naira’s value, and Nigeria’s pride, hinge on this pivot.
Monetary games have failed; it’s time to manufacture a future.
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