Senior Advocate of Nigeria and former President of the Nigerian Bar Association, Dr. Olisa Agbakoba, has described Nigeria’s current exchange-rate crisis as one of Africa’s worst currency performances, warning that the naira will continue to slide unless backed by real economic fundamentals.
In a strongly worded letter dated November 7, 2025, addressed to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Agbakoba said the naira’s over-40 percent depreciation in 2024 exposed the country’s weak currency structure and poor asset base.
He praised the Tinubu administration for achieving visible gains in GDP growth, declining inflation, improved oil production, increased foreign reserves, and relative exchange-rate stability, but stressed that Nigeria’s biggest challenge is still currency instability.
“We currently have one of the highest currency volatilities in Africa,” he wrote. “The naira lacks the fundamental pillars that inspire confidence to hold and use it. We must move beyond managing the rate and instead build the underlying value that makes our currency strong.”
Agbakoba’s letter, shared with The Guardian, outlines three key reforms that he believes could unlock over ₦1.5 quadrillion in trapped economic value and provide solid backing for the naira.
Agbakoba noted that almost 90 percent of Nigeria’s landmass remains untitled or carries defective ownership papers, making it “dead capital” that cannot be used for collateral or investment.
“We sit on $900 billion worth of idle property,” he explained. “If this land is given proper titles and legal recognition, Nigerians can access credit, create new value, and attract investment back home instead of abroad.”
He argued that once land assets are properly documented, they can support massive collateralised lending that boosts productivity, jobs, and the credit market — giving the naira a solid economic base.
The senior lawyer called for a deliberate shift from a cash-based economy to a credit-driven system that empowers citizens and businesses to borrow and spend within the naira system.
According to him, if 200 million Nigerians accessed just ₦300,000 each in affordable credit, the economy could gain over ₦60 trillion in fresh activity.
“A strong credit culture means more people will buy locally, grow businesses locally, and depend less on imported goods,” he said. “That reduces the pressure on the dollar and strengthens the naira.”
He suggested that a national framework for small business lending, backed by policy guarantees and legal reforms, could build financial inclusion and restore confidence in the naira as a medium of exchange.
Agbakoba identified agriculture as the most powerful engine for both food security and foreign exchange stability. He urged the government to move the sector away from subsistence farming to mechanised, export-oriented production.
“When a nation feeds itself and exports the surplus, its currency strengthens naturally,” he said. “Reducing food imports alone can save billions of dollars yearly. That directly stabilises exchange rates and reduces imported inflation.”
He stressed that large-scale mechanised farming would generate export revenue, strengthen FX supply, and shield the naira from external shocks creating sustainable long-term value.
Agbakoba projected a 10- to 20-year timeframe for the full implementation of these reforms, describing them as ambitious but realistic if backed by strong political will.
He pointed to the success of recent tax and fiscal reforms as proof that bold policy ideas can be executed when there is commitment.
“This is not easy work,” he wrote. “It will be painstaking, but it is doable. The foundation of every stable currency is productivity, not control.”
Agbakoba also attached his policy paper titled “Devolution is the Solution Foundational Reform Agenda for Nigeria’s Transformation”, urging the Finance Minister to consider the proposals as part of a national economic restructuring plan.
