Cardoso, Wale, and Bagudu: The Worst Culprits in Nigeria’s Currency Crisis

By Shamsudeen Ibrahim

In 2024, the Central Bank of Nigeria (CBN) made a bold move: it allowed the naira to float. The promise? A market-driven exchange rate system that would attract investment and promote transparency.

But less than a year later, the same CBN injected $197.71 million into the FX market to stabilize the naira a clear contradiction of its earlier stance. 

So, what went wrong?

Let’s be real: No developing country can afford a fully floating currency without active intervention.

We said it from the start, and President Tinubu was wrong in this regard.

We were all called names, but the reality is now here for everyone to see. And let's not forget whether it’s the Abokiforex bandits or others, not everything is apolitical.

By removing support for the naira too quickly, the government opened the floodgates to inflation. Imported goods became expensive overnight, businesses struggled, and the cost of living skyrocketed.

Now, in a desperate attempt to restore stability, the same policymakers are doing what they once criticized—defending the naira.

This $197.71 million injection on April 4, 2025, isn’t the first time the CBN has stepped in. In fact, in late 2024, the CBN sold $543.5 million to authorized dealer banks in an effort to stabilize the naira and prevent volatility.

The CBN even allowed Bureau de Change (BDC) operators to purchase up to $25,000 weekly in December 2024 to meet seasonal foreign exchange demand.

These ongoing interventions suggest that the naira is far from the freely floating currency that was initially promised.

This isn’t just economic misjudgment; it’s a painful lesson in policy realism. Currency liberalization sounds good on paper, but it requires strong institutions, diverse exports, and a buffer against external shocks none of which Nigeria had.

The result? A self-inflicted crisis that’s hurting everyday Nigerians. And the worst part? It could have been avoided with a more cautious, data-driven approach.

Policy should never be about ideology—it should be about what works.

This is one of the most TERRIBLE economic teams in the history of this country!