Business
History of Naira Revaluation and Devaluation (1973–2026)
Why was the naira devalued?
(Part 1): 1973-1986
The history of the Nigerian naira is marked by two major developments: periods when the currency gained value or was officially strengthened, and prolonged periods when it lost value against major international currencies, particularly the US dollar.
Since its introduction in 1973, the naira has undergone several exchange-rate policy changes, including fixed exchange rates, currency devaluations, foreign-exchange market liberalisation, attempts to unify exchange rates and market-driven depreciation.
The Central Bank of Nigeria (CBN) has played a central role in managing these changes.
- Introduction of the Naira in 1973
Nigeria introduced the naira on January 1, 1973, replacing the Nigerian pound.
The conversion rate was:
£1 Nigerian pound = ₦2.
₦1 = 10 shillings under the old currency system.
₦1 = 100 kobo.
The new currency was introduced during a period of expanding oil revenues and economic growth.
Nigeria initially maintained a relatively strong, managed exchange rate, supported by foreign-exchange controls and the country’s oil earnings.
The introduction of the naira was a currency change, not a devaluation.- The 1970s: A Relatively Strong Naira
During the 1970s, rising oil revenues strengthened Nigeria’s foreign-exchange position.
The government maintained a controlled exchange-rate system, initially linking the naira to the US dollar before moving to a basket of currencies representing major trading partners in 1978.
The oil boom provided foreign exchange for imports, infrastructure and public expenditure.
However, Nigeria’s dependence on crude oil revenues left the economy vulnerable to fluctuations in international oil prices.
Key development: The naira benefited from a relatively strong external position, although its exchange rate was managed by the authorities rather than determined by an unrestricted market.- The Early 1980s: Mounting Pressure on the Naira
The economic situation deteriorated in the early 1980s as oil revenues weakened and foreign-exchange shortages intensified.
Nigeria faced several economic challenges:
• Declining oil receipts.
• Rising import bills.
• Pressure on foreign reserves.
• Growing external debt and trade arrears.
• Increasing demand for foreign currency.
The government maintained controls on foreign exchange, but the official rate became increasingly disconnected from the rate at which foreign currency could be obtained in the parallel market.
This created pressure for exchange-rate reform.
The crisis set the stage for the introduction of the Structural Adjustment Programme (SAP) in 1986.- 1986: Major Naira Devaluation Under SAP
September 26, 1986, marked a turning point in the history of the naira.
Under the military government of General Ibrahim Babangida, Nigeria introduced the Second-Tier Foreign Exchange Market (SFEM) as part of the Structural Adjustment Programme.
The objective was to allow market forces to play a greater role in determining the naira’s exchange rate.
According to an International Monetary Fund account, the naira’s value was discounted by approximately 66 per cent at the inaugural SFEM auction.
The exchange rate moved from about ₦1.60 per US dollar under the previous administered rate to approximately ₦4.60 per dollar at the initial auction.
Why was the naira devalued?
The policy was intended to:
•Reduce the overvaluation of the naira.
•Improve the allocation of scarce foreign exchange.
•Encourage non-oil exports.
•Improve the competitiveness of Nigerian products.
•Reduce distortions in the foreign-exchange market.
However, the weaker currency also increased the naira cost of imported goods and production inputs.
The 1986 reform began a prolonged period of exchange-rate adjustments.- …To be continued
Business
Bank of Ghana launches new Cedi notes
The aim is to make cash transactions more convenient and strengthen confidence in the cedi.
The Bank of Ghana has launched the Ghana Cedi Heritage Series, a new set of smaller banknotes with enhanced security features, as part of efforts to modernise its currency.
The notes will enter circulation on December 1, 2026, replacing the existing designs.
The central bank officially launched the series on Thursday, November 12, 2026.
It said the redesigned notes have improved durability, more portable sizes and stronger security features.
The aim is to make cash transactions more convenient and strengthen confidence in the cedi.
A close examination of the new Heritage Series shows that only Dr Nkrumah retained a place on the new banknotes, while the other five members are absent.
The new series features other prominent Ghanaian personalities whose contributions span politics, religion, education, public service, culture and international diplomacy.
The Heritage Series, however, adopts an individual-portrait approach, recognising personalities whose contributions helped shape Ghana’s political, educational, cultural and diplomatic history.
Here are prominent Ghanaian personalities featured on new Ghana cedi notes:
On the GH¢1 note is Agnes Oforiwa Tagoe-Quarcoopome, who is said to be the first Makola woman to open a bank account with the then Standard Bank of West Africa (now Standard Chartered Bank).
Cardinal Peter Porekuu Dery, a revered Catholic priest from Zimuopare (Ko), near Nandom in the Upper West Region of Ghana back in the 1950s, features on the GH¢2 denomination.
James Emmanuel Kwegyir-Aggrey is featured on the GH¢5 note, with Justice Annie Jiagge, the first woman in Ghana and the Commonwealth of Nations to become a judge, appearing on the GH¢10 banknote.
The GH¢20 note features Dr Ephraim Amu, the composer of the Twi version of the Ghana national anthem, Yɛn Ara Asaase Ni, while Theodosia Salome Okoh, the designer of the Ghana flag, is on the GH¢50 denomination.
Former United Nations Secretary-General Kofi Annan features on the GH¢100 note, while Ghana’s first President, Dr Kwame Nkrumah, appears on the GH¢200 banknote.
Dr Nkrumah’s appearance on the GH¢200 note represents a change from the existing series, where his portrait appeared on the ceremonial GH¢2 denomination as part of the collective image of the Big Six.
The Big Six became prominent figures in Ghana’s independence struggle following their arrest by the British colonial authorities in 1948 after disturbances in Accra.
Business
Naira Exchange Rates Friday,13 Nov 2026
The black market (parallel market) exchange rates is the most searched forex query in Nigeria.
BLACK MARKET RATES
₦1435 DOLLAR (USD)
₦1870 POUND (GBP)
₦1540 EURO (EUR)
₦950 CANADIAN DOLLAR (CAD)
₦70 SOUTH AFRICAN RAND (ZAR)
₦350 UAE DIRHAM (AED)
₦100 GHANAIAN CEDI (GHS)
₦190 CHINESE YUAN (CNY)
₦2240 WEST AFRICAN CFA F.(XOF)
₦2180 CENTRAL AFRICAN CFA F.(XAF)
₦820 AUSTRALIAN DOLLAR (AUD)
Business
Exclusive:10,000MW Electricity Ambition Continues Under New Political Campaigns
By Ochefa
•Minister of Power Chief Olasunkanmi Joseph Tegbe
The Federal Government past and present has spent nearly two decades pursuing essentially the same 10,000MW electricity benchmark.
This is understandable given that electricity remains one of the biggest obstacles to industrial development in Nigeria.
That’s why in the ongoing 2027 election campaigns , the top three parties – APC, ADC, and the NDC recognise the importance of electricity to the economy, although their specific commitments differ.
APC: Plans to scale electricity generation towards 10,000MW, strengthen transmission and distribution, and expand clean energy access.
ADC: Emphasises energy-sector reforms and regional connectivity to support production and industrialisation.
NDC: Proposes expanding power generation and distribution. The NDC campaign blueprint specifically identifies an additional 10,000MW of power within four years as a target.
However, checks by Ohibaba.com shows that successive administrations have set the 10,000MW as a goal but achieving the target has remained elusive.
Here are the records:
Nigeria’s 10,000-megawatt (MW) electricity generation target dates back to the electricity expansion programme of the Olusegun Obasanjo administration (1999–2007), although successive governments adopted, modified and repeatedly renewed the target.
1. Obasanjo administration:
The original 10,000MW ambition (2005–2008).The roots of the 10,000MW target can be traced to the Federal Government’s efforts to expand electricity generation through the National Integrated Power Projects (NIPP).
Following the failure of private investment to deliver sufficient electricity, the government began directly funding new power plants from 2002.
In 2005, construction commenced on several NIPP power stations, including:
Alaoji
Geregu
Omotosho
Olorunsogo
Ihovbor
Egbema
Gbarain.

The government’s ambition was to push installed generation capacity beyond 10,000MW by the end of 2008.
An earlier policy document, however, had already established a more specific target of achieving 10,000MW of operable generation capacity by the end of 2011.
2. Yar’Adua administration: 10,000MW by 2011
The Umaru Musa Yar’Adua administration inherited the NIPP projects and retained the 10,000MW ambition.
A 2009 African Development Bank report on Nigeria’s Economic and Power Sector Reform Programme confirmed that the Federal Government expected to achieve 10,000MW of operable generation capacity by the end of 2011.
The strategy involved rehabilitating existing power stations and completing new plants under NIPP.
3. Jonathan administration: Target raised to 16,000MW
President Goodluck Jonathan’s Transformation Agenda (2011–2015) went beyond the 10,000MW benchmark.
The administration set the following targets:5,000MW by 2011.6,000MW by 2012.16,000MW by 2015.
However, by December 2012, actual generation had reached approximately 4,500MW, falling short of the 10,000MW target for that period.
4. Buhari administration: 10,000MW distributable electricityIn March 2016, President Muhammadu Buhari publicly announced a target of delivering 10,000MW of distributable electricity within three years.
He also promised to add 2,000MW to the national grid in 2016.
This was against the backdrop of the APC’s 2015 campaign manifesto, which promised to expand electricity generation and distribution to 40,000MW within four to eight years.
The distinction is important: Buhari’s 10,000MW promise referred to distributable power, not merely installed generation capacity.
5. Subsequent administrations.
The 10,000MW ambition continued under subsequent governments.
In 2021, Vice-President Yemi Osinbajo said investments exceeding $3 billion in generation, transmission and distribution infrastructure would put Nigeria on the path to achieving 10GW of electricity.
The National Development Plan 2021–2025 also incorporated a 10,000MW electricity target.
The historical significance: Why has 10,000MW remained elusive?
The recurring 10,000MW target exposes a fundamental problem with Nigeria’s electricity policy: successive administrations have announced ambitious generation targets without resolving the structural constraints affecting the entire electricity value chain.
The bigger question is how did countries like Egypt, South Africa, and Morocco attained energy security? Nigerian leaders can borrow a leaf from their strategy.
These include:
- 1. Gas supply constraints: Inadequate gas supply to thermal power stations.
2. Transmission limitations: Inability of the national grid to evacuate all available generation.
3.Distribution bottlenecks: Insufficient distribution infrastructure to deliver electricity to consumers.
4. Funding challenges: Persistent liquidity problems across the electricity market.
5 . Infrastructure deficits: Poor maintenance and inadequate investment in power infrastructure.
According to the Nigerian Electricity Regulatory Commission (NERC), as of October 2026, Nigeria’s installed electricity generation capacity is approximately 13,625 MW, but the amount of electricity actually available for generation is significantly lower.
What does this mean?
Nigeria has a significant gap between installed capacity and actual electricity generation.13,625 MW:
What the installed generating infrastructure can theoretically produce.4,744 MW:
What was available for dispatch in October.4,047 MW: Average electricity actually generated per hour.
This means Nigeria generated only about 30% of its installed generation capacity on average during October 2026.
Major challenge
1.The gap is associated with:Inadequate natural gas supply to thermal power plants.
2. Ageing generation infrastructure.
3.Poor maintenance and equipment failures.
4. Transmission infrastructure limitations.
5. Financial and operational challenges in the electricity market.
The big question is how did African countries like Egypt, South Africa, and Morocco attained energy security? Nigerian leaders can borrow a leaf from their strategy.
Electricity Generation Capacity of Five African Countries – 2026
Source: Afreximbank Power Industry Report 2022.
-
Politics2 days agoExclusive: 2027 Presidential Election: APC, ADC, NDC Manifestos Compared– Who Is Offering What To Nigerians?
-
Sports2 days agoBREAKING: Tinubu Rewards Flamingos with Massive Cash, Savings Certificates (Video)
-
News2 days agoPanic as Fully Loaded CNG Passenger Bus Explodes in Lagos
-
Politics2 days ago2027: APC To Introduce Public Dashboard For Tracking Tinubu’s Achievements
-
Politics3 days agoADC-PCC Slams Tinubu Campaign as Divisive, Empty
-
Business2 days agoDangote Cement Shelves $18 billion Listing On LSE
-
News1 day agoSeven UNN Pharmacy Graduates Die After Private Sign-Out Ceremony (Photos)
-
Health2 days agoNigeria Still Not Ebola-Free Despite No New Cases, NCDC Warns
