A recent report by Absa Group Ltd. predicts a 15% devaluation of the Naira when the Tinubu-led administration assumes office. What are the implications for Nigerian citizens?
In a few days, Nigeria’s president-elect, Bola Tinubu, will be sworn in. The president-elect assumes office with promises aplenty and very high expectations from Nigerians. In his 80-page campaign manifesto, amidst economic plans to address fiscal, monetary, and trade reforms, Tinubu promises to “carefully review and better optimise” the naira system.
However, a recent report from Absa Group Ltd., a Johannesburg-based financial services firm, stated that following Tinubu’s inauguration, the Nigerian currency will be devalued by 15% to alleviate severe trade imbalances and dollar shortages. Investopedia defines devaluation “as the deliberate downward adjustment of the value of a country’s money relative to another currency, group of currencies, or currency standard.”
In 2021, Nigeria
