Naira Depreciation Slows Down Japa Rate – Tinubu’s Aide Highlights Benefits of Naira Devaluation
Tope Fasua, the special adviser to the president on economic affairs (Office of the Vice President), has stated that the depreciation of the naira has led to a decline in the number of Nigerians leaving the country.
Fasua shared this during a panel discussion at the 2025 Annual Outlook Conference held on Thursday, January 16.
In his remarks, Fasua discussed some impacts of the naira devaluation, particularly in relation to the 2025 budget.
“There are some benefits we can identify,” he said. “The naira’s total volume has increased from around N30 trillion or N31 trillion to N49 trillion. What we aim to achieve is to leverage the purchasing power parity (PPP). This concept examines what the naira can buy within Nigeria’s domestic economy.
He explained further, saying, “In dollar terms, the budget may not seem impressive, especially per capita. But when we look inward and focus on what the naira can buy locally, we can strengthen the economy. For instance, $10 in New York may not cover a basic meal, but in Nigeria, $10 is equivalent to around N16,000, which has greater purchasing power here. This approach allows us to capitalize on the local economy.”
Fasua acknowledged the dual impact of the naira’s devaluation. On one side, it has contributed to inflation. However, on the other side, it has also reduced the “Japa” trend – the migration of Nigerians abroad.
He explained, “In the past, traveling to the UK might have cost about N1.5 million or N2 million for a flight ticket. Today, the same economy-class ticket could cost around N4 million or N5 million. This increase is making people reconsider their plans to leave the country.”
Fasua emphasized that the government is working to find a balance between managing the naira’s value and ensuring that its local purchasing power benefits the economy.
