Tinubu’s Aide Explains Benefits of a Weaker Naira on Emigration

Understanding the Impact of Naira Depreciation on Nigeria’s Japa Wave

The Special Adviser to President Bola Tinubu on Economic Affairs has highlighted certain advantages of the naira’s depreciation, notably a reduction in the “japa” phenomenon—the emigration of Nigerians seeking better opportunities abroad.

The adviser explained that the depreciation has led to an increase in the naira’s volume from approximately N30 trillion to N49 trillion.

Additionally, the weakened naira has made foreign travel and relocation more expensive, potentially deterring emigration and encouraging skilled professionals to remain in Nigeria.

However, it’s important to note that the naira’s depreciation has also contributed to economic challenges. In December 2024, Nigeria’s inflation rate rose for the fourth consecutive month, reaching 34.80% annually, driven by increased prices in food and non-alcoholic beverages.

Furthermore, small and medium-sized enterprises (SMEs) have been adversely affected by the naira’s devaluation, facing higher costs for raw materials and machinery, which threaten their survival and the broader economic stability.