The Presidency has defended the foreign exchange reforms introduced by President Bola Tinubu’s administration, stating that the naira has now discovered its true market value.
Speaking in an interview on Tuesday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, argued that the previous exchange rate system artificially undervalued the naira and encouraged arbitrage between the official and parallel foreign exchange markets.
According to Onanuga, when President Tinubu assumed office, the official exchange rate was around N400 to the dollar, while the black market rate was significantly higher, creating distortions in the forex market.
He explained that the administration’s decision to liberalise the foreign exchange market enabled the naira to reflect its actual worth.
The presidential aide also cited recent remarks by the International Monetary Fund (IMF), noting that the Fund estimated the naira’s fair value at about N1,100 to the dollar, despite trading above N1,300 in the foreign exchange market.
Onanuga expressed optimism that the currency would continue to strengthen as the reforms take effect.
He said, “If you do the mathematics, what was the level of our currency when this President came in? Officially, it was N400 to a dollar. Unofficially, we had criminal arbitrage going on, about a hundred percent of the official rate.
“The president allowed the Naira to find its true value.
“Yesterday or so, the IMF said the true value of Naira is about N1100, even though it exchanges above N1300. This means the Naira will even do better. It has found its true value. It will even appreciate more as we move on.
“What we have found, with the policies the government adopted in 2023, I know about 6 million Nigerians invested in the stock market and have grown wealthier since 2023.
“The companies operating in the stock market are based in Nigeria and are making money, and are also generating wealth for their 6 million shareholders.”
