The Naira Crisis Explained: Devaluation, Dollarization, and the Long Road Back
T he naira’s collapse isn’t just an exchange rate problem. It is a symptom of decades of structural dysfunction. In the space of less than three years, the Nigerian naira went from N460 to the dollar in mid-2023 to nearly N1,740 at its lowest point in late 2024 — a depreciation of more than 270 percent. [1] By early 2026, with monetary tightening, reserve rebuilding, and the early impact of the Dangote Refinery on import substitution, the naira has recovered to the N1,350–1,500 range. [2] That recovery is real. It is also fragile. And it does not begin to address the structural causes that have made the naira one of the most volatile major currencies in Africa for most of the past decade. This piece is a comprehensive explainer. Where did the naira crisis come from? What actually happened between 2023 and 2025? What does the road to genuine stability look like — and what does it demand of Nigeria’s economy and policymakers? The Deep Causes: Why Nigeria’s Currency Has Al...