The Independent Media and Policy Initiative (IMPI) has claimed that Nigeria spent about $388 billion defending the naira between 2000 and 2023, before the administration of President Bola Tinubu introduced foreign exchange reforms and unified the multiple exchange rate system.
In a policy statement signed by its Chairman, Dr. Omoniyi Akinsiju, the think tank said its findings showed that despite the huge expenditure by successive administrations, the naira continued to depreciate against the United States dollar during the period.
According to IMPI, the Tinubu administration’s decision to harmonise the foreign exchange market has eliminated what it described as an average annual expenditure of $16.8 billion previously used to defend the local currency.
The group stated that Nigeria’s foreign exchange market has become more predictable and stable following the reforms, arguing that previous interventions failed to halt the naira’s depreciation.
According to the statement, the Federal Government spent an estimated $388 billion defending the naira between 2000 and 2023, averaging $16.8 billion annually.
It claimed that the Olusegun Obasanjo administration spent about $60 billion over eight years, the Umaru Musa Yar’Adua administration $58 billion in three years, the Goodluck Jonathan administration $145 billion in five years, while the Muhammadu Buhari administration spent $125 billion over eight years.
IMPI argued that despite the interventions, the naira weakened significantly, falling from ₦22 to the dollar at the official market in May 1999 to about ₦460 by May 2023, while the parallel market rate declined from ₦80 to ₦780 over the same period.
The policy group further claimed that the Central Bank of Nigeria (CBN) intervened with about $7.8 billion in the foreign exchange market between 2024 and 2025, adding that the naira appreciated by 7.14 per cent over a 12 month period in 2025.
It also credited the unification of the foreign exchange market and the implementation of the “Nigeria First” local content policy with encouraging domestic production, reducing import dependence and contributing to a trade surplus of more than ₦6.69 trillion by late 2025.
IMPI further argued that Nigeria’s fiscal challenges before 2023 were linked to what it described as populist economic policies pursued by successive administrations between 1999 and 2015.
According to the group, its review of fiscal developments showed that although the administrations of former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, and Goodluck Jonathan generated a combined crude oil revenue of about $994.4 billion, they left behind combined external and domestic debts of about $65.49 billion and foreign reserves of $29.61 billion.
The think tank said that despite the substantial oil earnings recorded during the period, the country’s fiscal position remained weak, adding that the succeeding administration inherited limited accessible reserves and mounting economic challenges.
IMPI maintained that the reforms introduced by the Tinubu administration represented a departure from previous foreign exchange and fiscal policies, which it argued had imposed significant costs on the Nigerian economy.
