In the past year, the Nigerian naira has lost over half its value. According to data from the Central Bank of Nigeria (CBN), the naira closed at N1,597.478 to the dollar on Monday, 23 September.
This marks a sharp 53.19% depreciation compared to the same period in 2023 and coincides with Yemi Cardoso’s first year as Governor of the CBN.
Cardoso was appointed by President Bola Tinubu on 15 September 2023 for a five-year term, officially confirmed by the Senate on 23 September 2023. Since his appointment, the naira has plunged from N747.76/$1 to N1,597.478, effectively losing half its value.
Tinubu’s administration had aimed to stabilize the naira by unifying Nigeria’s multiple exchange rates, a move intended to attract foreign investors. However, this policy failed to bring in the anticipated foreign capital, further intensifying pressure on the naira. The CBN’s attempts to intervene in the foreign exchange market by selling dollars at artificially low rates also did little to prevent the currency’s freefall.
Under Cardoso’s leadership, the CBN has raised the Monetary Policy Rate (MPR) four times, with the latest increase pushing it to 26.75% in July 2024. Despite these aggressive measures, the naira has continued to struggle, and inflation has soared to record levels, only easing slightly by 2% in August 2024.
While Cardoso inherited a severely weakened economy, his response to the crisis has been met with mixed reactions. Some analysts have criticized his policies as inconsistent. With the Monetary Policy Committee (MPC) set to meet soon, experts like Professor Uche Uwaleke are advising caution, warning that further rate hikes could exacerbate the economic challenges Nigeria faces.
