₦airaland Forum

‘NNPC transition, naira redesign’ — economic events that shaped Buhari’s presidency

A retired major general and one of Nigeria’s most prominent political figures, Buhari served first as military head of state from 1983 to 1985, before returning as an elected president in 2015.

His two-term civilian presidency, which ended in 2023, was defined by a sweeping anti-corruption agenda, an economic reform programme, and sustained efforts to address insecurity across the country.

Nigeria’s economy experienced a mix of significant highs and painful lows under the late president. From two recessions to aggressive currency reforms and debt accumulation, Buhari’s administration left behind a complex economic legacy.

As his death continues to gather tributes following the announcement by Garba Shehu, the former president’s spokesperson, TheCable presents some of the economic developments that shaped Buhari’s eight-year tenure.


NIGERIA’S TWIN RECESSIONS

Nigeria slipped into recession twice during Buhari’s administration.

The first occurred in 2016, largely due to a sharp decline in global oil prices, and the poor management of the currency crisis.

The second recession came in 2020, following the COVID-19 pandemic, which disrupted global trade, weakened oil demand, and triggered economic contraction.

It was the first time Nigeria experienced two recessions within one administration.


SUPPORT FOR NIGERIANS IN INTERNATIONAL ORGANISATIONS

During Buhari’s presidency, Nigeria secured high-level leadership roles in major international organisations.

He endorsed Ngozi Okonjo-Iweala for director-general of the World Trade Organisation (WTO), supported Akinwumi Adesina and nominated him for a second term as president of the African Development Bank (AfDB).

Benedict Oramah was reappointed for a second term as president of Afreximbank under Buhari’s government in 2020.


COVID-19 ECONOMIC RESPONSE AND STIMULUS PLAN

To cushion the economic blow of the COVID-19 pandemic, the Buhari administration launched the N2.3 trillion economic sustainability plan (ESP) in 2020.

The initiative focused on job creation, micro, small, and medium enterprises (MSME) support, and agriculture.

Buhari also inaugurated the national poverty reduction with growth strategy (NPRGS) steering committee, with a stated goal to lift 100 million Nigerians out of poverty over 10 years — primarily through agriculture and economic diversification.


FULL IMPLEMENTATION OF THE TSA

Although the treasury single account (TSA) was introduced under former President Goodluck Jonathan, it was fully implemented by Buhari’s government in September 2015.

The TSA consolidated all government revenues into a single account with the CBN, aimed at improving transparency and curbing financial leakages across ministries, departments, and agencies (MDAs).


BORDER CLOSURES

In August 2019, Buhari’s government ordered the partial closure of land borders.

The policy aimed to curb smuggling and encourage local production of rice — pushing food prices higher.

The government reopened four major land borders in December 2020 amid growing criticism and economic strain.

RECORD-LOW OIL PRODUCTION

Despite being Africa’s largest oil producer, Nigeria witnessed a consistent decline in crude oil output under Buhari.

In 2022, at a time when global oil prices surged past $130 per barrel following Russia’s invasion of Ukraine, countries like Saudi Arabia raked in windfall revenues. Nigeria, however, struggled to meet its OPEC production quota.

With an output of 1.39 million barrels of oil in January, 2022, the country’s production declined for four consecutive months before it increased to 1.15 million bpd in June.

In July, production averaged just 1.08 million bpd, and by August, it dropped below the 1 million bpd mark — Nigeria’s lowest level in decades. Output only rose modestly in October and November to 1.01 million bpd and 1.18 million bpd, respectively.

Throughout 2022, Nigeria was unable to surpass 1.4 million bpd oil output.


OFF-SPEC PETROL SAGA

In February 2022, panic spread across the country after substandard petrol was distributed in Nigeria.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) later confirmed that petrol with methanol content above acceptable limits had entered the market.

Mele Kyari, who was the NNPC Group chief executive officer at the time, said the adulterated product had been imported by several companies, including MRS, Oando, Emadeb Consortium, and Duke Oil — a subsidiary of NNPC. The companies denied the allegations.

Following the incident, oil marketers initiated a phased recall of the off-spec product to prevent widespread distribution, while regulators formed a technical committee to address the issue.

The withdrawal of the affected product created a supply gap, triggering scarcity nationwide. It was worst product contamination ever experienced.

OIL THEFT

In 2021, Nigeria’s oil production ranged between 1.4 million and 1.7 million bpd. However, a combination of challenges — including widespread oil theft and frequent pipeline vandalism — led to a sharp decline in output in 2022.

In June 2022, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported that the country lost $1 billion in the first quarter of the year to oil theft.

Later in November, the senate committee investigating oil theft and its consequent damage to the country’s economy revealed that Nigeria lost N1.3 trillion ($2 billion) to oil theft between January and August 2022.

Apart from the losses recorded, significant volumes of crude oil were shut-in consistently due to theft.

NNPC TRANSITION TO COMMERCIAL COMPANY

In a major structural reform, the Nigerian National Petroleum Corporation (NNPC) transitioned into a limited liability company in July 2022.

NNPC Limited

At the unveiling ceremony, Buhari said the NNPC Limited would operate “free from institutional regulations, such as the treasury single account, public procurement, and fiscal responsibility act”.

Buhari added that the company would deliver value to over 200 million shareholders (Nigerians) following the transition.


SOARING PUBLIC DEBT

According to the Budget Office, total federal revenue between 2016 and 2022 stood at N26.67 trillion, while expenditure reached N60.64 trillion — resulting in a deficit of N33.97 trillion.

The massive shortfall was covered through domestic borrowing, with the federal government’s local debt rising from N8.84 trillion in December 2015 to N44.91 trillion by June 2023. Over the same period, external debt increased from $7.35 billion to $37.2 billion.

This excludes ways and means borrowing from the CBN, which amounted to over N25 trillion.

Overall, Buhari raised Nigeria’s debt stock from N42 trillion to N77 trillion — significantly increasing debt servicing costs from N1.06 trillion in 2015 to N5.24 trillion by 2022.


EXCHANGE RATE VOLATILITY AND NAIRA DEPRECIATION

The naira lost significant value during Buhari’s tenure. In 2015, the official exchange rate was about N197 to the US dollar.

Yuletide: CBN permits BDCs to buy $25,000 weekly from banks to meet demands

At the end of Buhari’s administration, the exchange rate in the official market was N464.51, while that of the black market averaged N762.


NAIRA REDESIGN

In terms of monetary policies in 2022, the central bank announced plans to redesign, produce, release and circulate a new series of three banknotes out of the existing eight banknotes.

The redesigned N200, N500, and N1000 notes were slated for circulation on December 15, 2022.

The bank said the current series of the aforementioned naira notes will remain legal tender until January 31, 2023.

The move was targeted at controlling currency in circulation, curbing counterfeiting, and reducing the amount of cash available to the public to “pay ransoms to kidnappers”.

The newly redesigned naira notes were officially unveiled by Buhari on November 23.

The new notes were criticised by many Nigerians who described the change as a “repainting –not redesigning”.

https://www.thecable.ng/nnpc-transition-naira-redesign-economic-events-that-shaped-buharis-presidency/

Rip to tenacious leader, he try his best, but cabal over power him

Nigeria too big and too stubborn to rule by one person

What did he bring to the table of the poor than sorrow and death. Please, let's move on because we will all die one day
Just be good and nice and don't be evil when u are in power

May his soul continue to rest. Regardless . More words to make ut 40 characters

Tales by moonlight. Nigerians are really tired of the daily dose of lies

You see how he failed woefully, except for his family that was not hit by the recession.

And God shamed them all, all of them that changed our currency in election period just to fight one man were humiliated by God

APC Damaged Nigeria

It started at Ojota

then Buhari took over and started the damage

Now the damage is in full gear and auto pilot

Anywhere belle face

who has that image of a calf moving left and right at the same time

You mean Economic Events That marred Buhari’s Tenure?

One of the biggest mistakes PBAT made…

In PMB’s tenure, Dollar had already destroyed naira

They were only patching it up

PBAT came and removed the veil.

PBAT is tirelessly working on correcting mistakes and inactions of PMB.

If Peter Obi had won, he would have continued to veil the real economic problems, but put food on the table of the common man

Thereby creating bigger pits and destroying the future in exchange for cheap praises!

To hell with your praises! The right things must be done! Forward we must!

No to veil! Yes to hard, decisive decisions.

columbus007:
You see how he failed woefully, except for his family that was not hit by the recession.

Lagos - Ibadan Expressway
Lagos - Ibadan Railway
Muhammadu Buhari 2nd Niger Bridge

Nigerians suffered under Buhari.. And are suffering more under Bola Ahmed Tinubu..

If the later does today (God forbid oooo), the country will turn into a carnival.

It is what it is.

They can continue lying to themselves. Buhari messed up the country. As simple as that.

People must talk good about person wen he dies even if he most wicked or useless person on earth.

Buhari did bad for Nigeria far more than good he did, may we never see such leader again.

I don't know what to say. I don't know if I want to say anything.

Let’s not coerce oneself because of death, that man was a failure and will be remembered as such.

The naira redesign was one of the most disastrous policies of the Buhari's catastrophic APC government

He was an absolute failure. 💯 percent no more words

Rip buhari, you were the worst president in the history of Africa but atleast you were better than what we currently have now as president

May his soul rest on...And may God forgive his shortcomings

Make unah stop all this rubbish 🗑, the fact that we want to respect the dead does not Mean we aren't wise, buhari does not deserve peace becos he killed more people than even Donald Trump and his Government was a disaster, Infact GOD must judge Buhari shuuu, very wicked and Evil president, No emotions attached joor

And who benefited from it ?
And who benefited from it ?

he was too nepotic. people will not feel sad for him