Sunday 21 December 2014

How Stable Was The Naira Under Gen. Buhari?


Sometimes I feel for the "poor" Nigeria voters who are constantly fed with half-truth and in some instances, outright lies. We are at it again, being told how perfect, stable Naira was under Buhari. To even quote GMB,

"And if you recall by the time we were removed,
one naira was equal to 1.2 or 1.5 dollars. The naira was run down to N80 to a dollar by General Babangida's regime"

Two things are involved here:
1. At no point during the administration of IBB was naira N80 to a dollar, the highest it was at parallel market was N21.90
2. When Buhari took over in 1983, the Naira was exchanging for N 0.724 to a dollar, by the time he left office, the Naira was exchanging at between N1.5 to 1.7 in the parallel market. We will make use of the N1.5 exchange rate.

From 1983 to 1985, the Naira moved from 0.724 to 1.5 representing a 107% depreciation of the Naira!

The question therefore, with 107% depreciation
of naira from 1983 to 1985, how stable was the
naira under Buhari?

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