- The naira weakened against the dollar by the most since Nigeria’s return to democratic rule under Suspended CBN governor Godwin Emefiele
- Checks shows that the Nigerian Naira touched its lowest level against the dollar at the official foreign exchange market
- Nigerian president Bola Tinubu will be hoping that the new leadership installed at CBN will bring a solution
To put it into clearer perspective, it was the poorest performance among the last four CBN governors since Nigeria's return to democracy.
When Emefiele assumed office in March 2014, the official exchange rate of the Naira to the dollar was N155, according to StatiSense.
However, on Friday, June 9, 2023, coinciding with Emefiele's last day in office, data from FMDQ securities showed that the closing market rate for the Naira against the US dollar was N472.50.
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This indicates an official depreciation of the Naira by N317.5 or 204.83 percent against the dollar during Emefiele's nine-year leadership tenure.
Naira performance at the black market
The situation worsens significantly on the unofficial black or parallel market, where the Naira has experienced its most severe depreciation.
When Emefiele assumed office, the Naira was exchanging at N167 for a dollar in this market, after nine years, it has suffered depreciation of 357.4 percent, reaching a closing rate of N765/$ on Friday.
How Naira performed under CBN governors since 1999
Analyzing the performance of the Naira under various CBN governors since 1999, it is evident that each governor faced unique challenges.
However, it has never been as dire as it has been between 2014 and 2023.
- Joseph Sanusi (1999 to 2004): The naira-to-dollar exchange rate in Nigeria increased from N99 to N132.
- Chukwuma Soludo (2004-2009): The CBN rate stood at N146, while the alternative rate reached N181, resulting in a difference of N35.
- Sanusi Lamido Sanusi (June 2009-Feb 2014): The CBN rate was N155, compared to N167 for the other rate, showing a difference of N12.
- Godwin Emefiele (2014-2023): During Emefiele's tenure, the CBN rate was N463, while the alternative rate soared to N765, resulting in a difference of N301.
Difference between black and official rate at the end of CBN governors tenures
One major theme discussing Emefiele's tenure is the wide disparity between the official rate and black market rate.
Here is how the governors fared at the end of their tenure
- Soludo - May 2009
CBN rate: N146
black market rate: N181
- Sanusi - Feb 2014
CBN rate: N155
Other rate: N167
- Emefiele - Jun 2023
CBN rate: N463
Other rate: N765
CBN gets news acting Governor, Folashodun Adebisi Shonubi
In another report, Legit.ng profiled the new acting CBN governor, Folashodun Adebisi Shonubi, and his career journey.
Shonubi was considered for the role by President Tinubu among four deputy governors: Aisha Ahmed, Edward Adamu, and Kingsley Obiora.
By law, one of the deputies must complete Emefiele’s tenure, which was expected to expire on May 2024.