Federal government credits Nigerian currency recovery to oil revenues, foreign cash sent back home by expatriates, and settling overdue foreign exchange obligations.

In a remarkable turnaround, Nigeria's currency, the Naira, has emerged as a growth driver for the economy, thanks to the foreign exchange reforms implemented by President Bola Tinubu's administration.

The unification of the foreign exchange market, which took place in 2024, was a significant step towards creating a single transparent rate. This move, coupled with the clearance of a valid foreign exchange backlog amounting to $1.5 billion in March 2024, restored investor confidence and improved trade flows.

The Director-General of the Budget Office of the Federation, Tanimu Yakubu, attributed the Naira's rebound to three key factors: rising oil receipts, strong inflows from diaspora remittances, and the clearance of over N4 billion in outstanding FX backlogs.

The impact of these reforms was particularly visible in Nigeria's export sector. Local products became more competitive in global markets, leading to an increase in export volumes from 3.83 million metric tonnes to 4.04 million metric tonnes. Non-oil exports also saw a significant boost, rising from $2.696 billion in the first half of 2024 to $3.225 billion in the same period of 2025.

The scrapping of multiple exchange windows in 2024 initially led to a sharp depreciation of the Naira. However, Yakubu explained it as a deliberate recalibration of the foreign exchange market. This recalibration, combined with the other factors, led to the Naira recovering to N1,525 per dollar by August 2025, representing a 15.28% gain in just five months.

The DG of the Budget Office described this as a "sweet spot" for the economy. He emphasised that if Nigeria stays the course, the story of the Naira will not be about collapse and recovery but about reinvention.

In February 2024, CBN governor, Olayemi Cardoso, disclosed that about $2.4 billion foreign exchange backlog was not valid for settlement. A forensic audit by Deloitte Management Consultant had identified these invalid liabilities, reducing the initially reported $7 billion FX liabilities of the federal government.

The reforms have indeed turned the Naira into a growth driver, boosting trade and attracting new investment. President Bola Tinubu's foreign exchange reforms were credited by Yakubu for repositioning the Naira as a tool of competitiveness rather than weakness. This transformation of the Naira has undoubtedly played a crucial role in Nigeria's economic recovery and growth.

Federal government credits Nigerian currency recovery to oil revenues, foreign cash sent back home by expatriates, and settling overdue foreign exchange obligations.