In June 2023, Nigeria took a bold step: it ended the confusing system of multiple exchange rates and finally let the naira float. No more special windows. No more hidden deals. For the first time in years, the real value of the naira would be determined by the market, not by backroom arrangements.
This historic shift was led by Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), who called the previous system “broken”. And he had a point. That system allowed a select few to profit by buying dollars cheaply from the CBN and reselling them at much higher rates on the black market, a classic case of rent-seeking. It didn’t build factories, it didn’t create jobs, and it drove away serious investors.
A currency trap that scared off investors
