Naira Rebounds on Oil Receipts, Diaspora Remittances, and FX Reforms – Budget Office DG

Budget Office DG has credited Naira rebound to oil receipts, diaspora Remittances, and FX Reforms by the Tinubu Government.

NaijaOnPoint Nigeria reports that the Director-General of the Budget Office of the Federation, Tanimu Yakubu, has attributed Nigeria’s recent currency rebound to higher oil receipts, strong diaspora remittances, and the clearance of foreign exchange backlogs.

In March 2024, the Central Bank of Nigeria (CBN) announced the full settlement of a valid $1.5 billion foreign exchange backlog. Yakubu, in a statement on Saturday, said President Bola Tinubu’s foreign exchange reforms have repositioned the naira as a tool of competitiveness rather than weakness.

Scrapping Multiple Exchange Windows

Yakubu recalled that the elimination of multiple exchange windows in 2024 initially triggered a sharp naira depreciation, with the currency dipping to as low as ₦1,800/$, prompting critics to call it a “worthless Naira.”

“What looked like a collapse was in fact a reset. It was a deliberate recalibration of our foreign exchange market,” Yakubu explained.

Naira Gains 15% in Five Months

By August 2025, the naira had recovered to ₦1,525/$, marking a 15.28% gain in just five months. Yakubu credited the turnaround to three key drivers: rising oil receipts, robust diaspora remittances, and the clearance of over ₦4 billion in outstanding FX backlogs.

He also highlighted that the unification of the FX market, creating a single transparent rate, restored investor confidence and enhanced trade flows.

“With a realistic exchange rate, our cocoa, sesame, and even processed chocolate became cheaper in New York, Mumbai, or São Paulo, without local producers earning less,” Yakubu said.

Exports Rise as Reforms Trigger “Virtuous Cycle”

Data from the Budget Office showed non-oil exports rising from $2.696 billion in H1 2024 to $3.225 billion in H1 2025, while export volumes increased from 3.83 million metric tonnes to 4.04 million metric tonnes. Yakubu described this as a “sweet spot,” where exporters earn more in naira, foreign buyers pay less in dollars, and the economy benefits from stronger inflows.

“This is a virtuous cycle. FX reform leads to a realistic naira, which makes our goods competitive. That drives exports, and the resulting inflows strengthen the naira further,” he explained.

Looking Ahead

Yakubu emphasized that the reforms have positioned the naira as a growth driver, boosting trade and attracting investment.

“If Nigeria stays the course, the story of the naira will not be about collapse and recovery but about reinvention—an economy using its currency as an engine of global competitiveness,” he added.

What You Should Know

In February 2024, CBN Governor Olayemi Cardoso clarified that $2.4 billion of reported FX backlog was invalid for settlement. Out of the initially reported $7 billion FX liabilities, a forensic audit by Deloitte Management Consultants identified these discrepancies.