(DDM) – Former Nigerian President Olusegun Obasanjo has expressed shock over the severe devaluation of the naira, warning that Africa’s economic stability remains fragile without urgent reforms.
Diaspora Digital Media (DDM) gathered that Obasanjo made the remarks during a Fireside Chat at the ongoing Intra-African Trade Fair (IATF 2025) in Algiers, Algeria, on Tuesday, September 9, 2025.
The session, moderated by CNBC Africa’s Fifi Peters, featured Obasanjo voicing concern over Africa’s dependence on foreign currencies.
He described the naira’s current state as a personal heartbreak.
“Nigeria’s currency today is not worth the paper it is printed on,” Obasanjo declared.
The former leader recalled that when he left office as military Head of State in 1979, the naira was among the world’s strongest currencies.
“In 1979, one naira was $1.80. Today, $1 is equivalent to about ₦1,600,” he lamented.
He questioned the policies that had reduced the nation’s currency to what he called a “shadow of its former self.”
“What have we done to devalue our currency to this extent? Something must be wrong,” he said.
“I cannot believe that in my own lifetime, the naira has become so devalued that it is not even worth the paper it is printed on.”
Beyond Nigeria, Obasanjo criticized Africa’s continued reliance on the US dollar and euro for trade and investment.
He argued that this dependence undermines regional growth and integration.
Obasanjo renewed his advocacy for the creation of a unified African currency.
He insisted that only a collective monetary framework could shield the continent from external shocks.
As Chair of the IATF Advisory Council, Obasanjo commended the African Export-Import Bank (Afreximbank) for pioneering the Pan-African Payment and Settlement System (PAPSS).
The system enables cross-border trade in local currencies, reducing the dominance of foreign exchange.
According to Obasanjo, PAPSS represents a critical step toward true financial independence.
He urged African leaders to deepen support for the initiative, describing it as a “lifeline” for intra-African trade.
Analysts say Obasanjo’s comments reflect growing concern that Africa’s economic future will remain tied to external powers unless deliberate steps are taken.
His remarks come at a time when Nigeria faces historic inflation, currency volatility, and rising unemployment.
Observers also note that his criticism echoes wider frustrations about governance and economic mismanagement across Africa.
In a separate comment, Obasanjo touched on political dynamics, suggesting that northern interests might shift strategies to weaken President Bola Tinubu’s electoral chances.
“But will it work? That is the question,” he said cryptically.
The elder statesman concluded with a warning that Africa must choose between dependency and sovereignty in its economic path.
For Obasanjo, the collapse of the naira stands as both a personal disappointment and a cautionary tale for the entire continent.
The post Obasanjo laments naira collapse, renews call for African currency
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first appeared on Diaspora Digital Media DDM.
