Naira Loses Over Half Its Value in Cardoso’s First Year as CBN Governor

The Nigerian naira has lost half its value in just one year. Data from the Central Bank of Nigeria (CBN) website shows that the currency closed at N1,597.478 per dollar on Monday, 23 September. This is a significant 53.19 per cent depreciation from the same period last year and coincides with Yemi Cardoso’s first year as Governor of the Central Bank of Nigeria (CBN).

President Bola Tinubu appointed Cardoso on 15 September 2023 for a five-year term pending Senate confirmation. He was officially confirmed on 23 September 2023. The naira has depreciated from N747.76/$1 to 1597.478, losing half its value.

Tinubu’s administration unified Nigeria’s multiple exchange rates to stabilise the naira and attract foreign investors. This policy, however, failed to bring in the expected foreign capital and led to increased pressure on the naira. The CBN’s intervention in the foreign exchange market, which involved selling dollars at cheap, unrealistic rates, also did little to curb the currency’s depreciation. Under Cardoso’s leadership, the apex bank also raised the Monetary Policy Rate (MPR) four times, reaching 26.75 per cent in July 2024.

Despite the CBN’s desperate efforts to stabilise the naira, the currency has struggled. Inflation has also worsened to an all-time high for Nigeria, with only a slight 2 per cent drop in August 2024. While it has been noted that Cardoso inherited an already struggling economy, analysts have described his approaches as inconsistent. As the Monetary Policy Committee (MPC) prepares to meet, experts like Professor Uche Uwaleke are urging caution. They warn against further rate hikes to avoid additional economic strain.

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