The naira has lost 221% of its value, and inflation has risen to 33.6% under President Bola Ahmed Tinubu’s administration, despite his “Renewed Hope” manifesto promising to stabilize the currency and tackle inflation. The Central Bank of Nigeria (CBN) has implemented several policy initiatives, including the “willing buyer, willing seller” model and harmonizing foreign exchange markets, but the naira continues to depreciate, and inflation persists.
The CBN has increased the Monetary Policy Rate (MPR) to combat inflation, but this approach contradicts Tinubu’s manifesto, which condemned increasing interest rates and tighter money supply as an “usual anti-inflation medicine.” Experts like Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises, believe more needs to be done to achieve monetary policy targets, including defining the limits of tightening monetary policy and addressing issues around interest rates, customs duties, and exchange rate volatility.
While some progress has been made, including narrowing the gap between official and parallel market rates and increasing transparency, the current situation remains challenging for businesses and individuals, with high interest rates and inflation affecting economic activity and jobs.
