Did Buhari-Era CBN Borrowing Drive the Naira’s Decline?
I argue that the naira’s decline began largely under President Muhammadu Buhari’s administration, particularly through heavy Central Bank of Nigeria lending to the federal government. The Buhari administration reportedly relied on substantial Ways and Means advances from the CBN. I believe this expanded the money supply and weakened the naira over time. I also argue that the exchange rate was temporarily supported by selling borrowed foreign exchange at subsidised rates. The issue is more complex than blaming the current administration alone, and Nigeria needs an honest debate about the policies behind the naira’s fall.
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