Naira Finds True Value Under Tinubu's Forex Reforms

The Nigerian presidency, represented by Special Adviser on Information Strategy Bayo Onanuga, stated that the naira has discovered its true market value following the foreign exchange reforms introduced by President Bola Tinubu's administration. Onanuga explained that the previous exchange rate system artificially undervalued the naira, which encouraged arbitrage between the official and parallel foreign exchange markets.

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. The administration's decision to liberalize the forex market has allowed the naira to reflect its actual worth.

The IMF has estimated the naira's fair value at N1,100 to the dollar, despite it trading above N1,300 in the foreign exchange market. Onanuga expressed optimism that the currency would continue to strengthen as a result of these reforms.