Past Leaders Spent $388 Billion Defending The Naira, Tinubu Is Changing The Narrative

By Mohammed Bello Doka 

In the past 24 years, Nigeria's successive administrations spent an astonishing $388 billion defending the naira, yet the currency's value plunged drastically over the years. While President Bola Ahmed Tinubu could theoretically equalize the naira and dollar today with a single press release, such a move would require enormous reserves of foreign currency to sustain.

Historical figures highlight this colossal expenditure. During President Olusegun Obasanjo's tenure, $60 billion was spent defending the naira over eight years. President Umaru Musa Yar’Adua allocated $58 billion within just three years, while President Goodluck Jonathan spent $145 billion in five years. Most recently, former President Muhammadu Buhari committed $125 billion over eight years to stabilize the naira.

Despite these expenditures, the naira suffered catastrophic devaluation. From N22 to $1 in 1999, the exchange rate plunged to N460 in 2023 at the official window—a staggering 2,100% loss. The parallel market told an even worse story, with rates sliding from N80 to N780 during the same period.

Unlike his predecessors, President Tinubu has taken a bold and transformative approach by floating the naira—a strategy modeled after the economic policies of developed nations that have long embraced free-floating currencies. Floating the naira, though challenging in the short term, is projected to yield long-term benefits for Nigeria, unlocking billions in potential investments and creating sustainable economic growth.

Analysts argue that if leaders before Tinubu had adopted this forward-thinking strategy, Nigeria’s external reserves could have been fortified with hundreds of billions of dollars. The country would also have witnessed unprecedented development across key sectors, laying a foundation for prosperity.

Tinubu’s fiscal reforms are planting seeds for a resilient economy that will benefit future generations. As Nigerians endure the current economic adjustments, there is growing optimism that the sacrifices made today will shape a stronger and more self-reliant nation.