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History of Naira Revaluation And Devaluation (1973-2026 (Part 3) Time Line: (2016-2026)

Following the sharp depreciation of 2023 and early 2024, Nigeria continued pursuing foreign-exchange market reforms.

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October 29, 2026

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Today, we concluded our piece on the history of the Nigerian Naira currency movement, and how it can gain weight against the world’s top three currencies – The US Dollar, Pound and the Euro.

2016: Another Major Exchange-Rate

In June 2016, the CBN adopted a managed floating exchange-rate regime.

The policy followed increased pressure on foreign exchange, declining receipts from crude oil sales and falling reserve inflows.

The new arrangement allowed market forces a greater role in determining the naira’s value, while the CBN retained the ability to intervene.

The reform was intended to improve foreign-exchange market efficiency and liquidity.However, exchange-rate restrictions and differences between official and parallel-market rates continued in subsequent years.

2020–2022: Further Depreciation

Between 2020 and 2022, the naira continued to weaken.

The CBN’s historical data show the official exchange rate moving from approximately ₦358.81 per dollar in 2020 to ₦454.06 in 2022.

The parallel-market rate was weaker.

Factors influencing the currency included:

1.Foreign-exchange supply constraints.

2. Demand for imported goods and services.

3. Dependence on crude oil exports.

4. Pressure on external reserves.

Differences between official and parallel-market exchange rates.

Although the authorities maintained various exchange-rate management measures, the disparity between official and parallel-market prices remained a major policy challenge.

2023: Exchange-Rate Unification and Sharp Depreciation

In June 2023, the CBN introduced major changes intended to unify Nigeria’s multiple exchange rates and move towards a more market-determined system.

The reform sought to reduce exchange-rate distortions, improve transparency and attract foreign investment.

However, the naira depreciated sharply as the market adjusted to the new arrangements.

The CBN’s historical data put the average official exchange rate at approximately ₦634.16 per dollar in 2023, compared with ₦454.06 in 2022.

The parallel-market rate also weakened substantially.

Why did the naira weaken?

Several factors contributed to the pressure:

Adjustment from previously managed exchange rates.

Limited foreign-exchange supply relative to demand.

Foreign-exchange backlogs.

Demand for imports and overseas payments.

Investor concerns and uncertainty.

Inflation and broader macroeconomic pressures.

The depreciation increased the naira cost of imported fuel, machinery, medicines, raw materials and other goods.

It also raised production costs for businesses dependent on imported inputs.

The distinction is that exchange-rate unification is a policy reform, while depreciation is a movement in the currency’s market value.

They occurred together, but they are not the same thing.

2024–2026: Can the Naira Be Revalued?

Following the sharp depreciation of 2023 and early 2024, Nigeria continued pursuing foreign-exchange market reforms.

A sustained recovery in the naira would depend on several factors, including:

• Higher and more predictable foreign-exchange earnings.

• Increased crude oil production and export receipts.

• Stronger non-oil exports.

• Greater foreign investment and export-oriented production.

•Improved confidence in economic policy.

• Lower inflation and more stable domestic prices.

•Adequate foreign-exchange liquidity.

A currency can appreciate temporarily because of increased foreign-exchange supply, policy changes or reduced demand.

Sustained appreciation generally requires improvements in the underlying balance between foreign-exchange supply and demand

END

Related Topics:Featured Naira Depreciation

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Exchange Rates Thursday October 29 2026

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Business

Exchange Rates Thursday October 29 2026

Published

32 minutes ago

October 29, 2026

OCHEFA

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Black Market Rates

₦1388DOLLAR (USD)

₦1815POUND (GBP)

₦1520EURO (EUR)

₦970 CANADIAN DOLLAR (CAD)

₦65 SOUTH AFRICAN RAND (ZAR)

₦350 UAE DIRHAM (AED)

₦190YUAN (CNY)

₦100G.CEDI (GHS)

₦2300CFA F.(XOF)

₦2200CFA (XAF)

₦850 AUSTRALIAN DOLLAR

Official CBN Exchange Rates

DOLLAR (USD) ₦1347.53

POUND (GBP) ₦1790.86

EURO (EUR) ₦1500.34

SWISS FRANC (CHF) ₦1622.74

JAPANESE YEN (JPN) ₦8.53

CFA FRANC (XOF) ₦2.32

WEST AFRICAN UNIT OF ACCOUNT (WAUA) ₦1849.17

CHINESE YUAN (CNY) ₦202.13

SAUDI RIYAL (SAR)₦359.09

SOUTH AFRICAN RAND (ZAR)₦80.86

Business

MTN Pushes Back Fast Data Depletion Complaints To Subscribers

MTN Nigeria’s General Manager of Network Performance and Quality Assurance, Mr Mike Ndukwe, said video streaming, social media activity and automatic downloads were among the main causes of fast data depletion.

Published

14 hours ago

October 28, 2026

OCHEFA

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MTN Nigeria has blamed poor phone settings and unmanaged data consumption for the rapid depletion of subscribers’ data bundles.

The company spoke at its Data on Trial experience in Abuja on Monday, where executives urged users to check how their devices and apps use data.

He advised subscribers to disable automatic media downloads, restrict background data usage and set apps to download large files only when connected to Wi-Fi.

Ndukwe argued that data depletion generally comes from users’ online activities or phone settings, not unexplained deductions.

He urged subscribers to understand how their devices and applications consume data.

MTN Nigeria CEO Mr Karl Toriola linked data pricing to the operational costs telecom operators face.

He said operators spend heavily on electricity, transportation and other infrastructure needed to keep telecom sites running.

Toriola said MTN spent about N4.05 trillion on power in the preceding year.

He pushed back against the view that data is always more expensive in Nigeria. “Even within the context of data being perceived as more expensive in Nigeria, the UK is the example I was giving,” Toriola said. “Please, understand that in this country, as well as some other African countries, we are providing power and transportation to all our sites. The cost of electricity, for instance, is higher here than in the UK.”

Business

Investors from 120 countries participate in Dangote Refinery’s IPO

Investors from all 54 African countries and five other continents participated in the offering, the company said.

Published

15 hours ago

October 28, 2026

OCHEFA

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Africa’s richest man Aliko Dangote has closed the continent’s biggest initial public share offering for the oil refinery, claiming to have raised funds from investors in 120 countries.

The IPO for the Dangote Petroleum Refinery was initially due to close on October 13 but was extended by two weeks to allow more Africans to participate. It closed today, Wednesday, October 27.

The company did not disclose how much money was potentially raised by the offering, after saying its target was $1.6 billion.

But Aliko Dangote said earlier this month that it had exceeded that goal by “more than three, four times”.

“This is a historic achievement for Africa. It shows what is possible when we believe in our continent, work together and invest in our shared future,” he said in a statement late Tuesday.

The massive refinery has a capacity of 700,000 barrels per day and aims to double its output to 1.4 million barrels per day, potentially making it the world’s largest refinery, surpassing the Jamnagar refinery in India.

Investors from all 54 African countries and five other continents participated in the offering, the company said.

“Investor applications spanning 120 countries demonstrate the extraordinary international interest in our business and the confidence that investors are placing in the future of this refinery,” Aliko Dangote said.

“The opportunity to own a stake in a major African industrial enterprise has reached investors across every African country and all six inhabited continents,” he added.