# Restoring the naira as a store of value

> How Nigeria can regain naira trust without nationalizing dollar deposits.
- Title: Restoring the naira as a store of value | Shortify
- Summary: How Nigeria can regain naira trust without nationalizing dollar deposits. Nigeria must lower inflation to 15% and stop government from using central bank for…
- Keywords: naira, inflation, central bank of nigeria, monetary policy, dollarisation, fiscal deficits, nigerian economy, news, politics, Restoring, store, value
- Source: Premium Times Nigeria — https://premiumtimesng.com/opinion/916321-restoring-the-naira-as-a-store-of-value-by-uddin-ifeanyi.html
- Author: Ifeanyi Uddin
- Published: 2026-10-12T11:22:24+00:00
- Read time: 2 min
- Topics: naira, inflation, central bank of nigeria, monetary policy, dollarisation, fiscal deficits, nigerian economy, news, politics
## Nigeria’s monetary policy crisis
The central bank’s policy rate has not transmitted price signals for years despite inflation running riot.
## Inflation at 30% year-on-year
Nigeria’s inflation rate was 30% year-on-year before dropping to 15% but still harming the naira’s value.
## Naira’s purchasing power
N100 today has roughly the purchasing power of only ₦50 after five years.
## Dollarisation in nigeria
Nigeria has partial dollarisation where locals use foreign currency alongside domestic currency.
## CBN’s cash reserve requirement
The central bank requires 45% of deposit money banks to hold cash reserves with the central bank.
## CBN’s policy rate failure
The policy rate has remained unchanged while inflation ran riot and the naira’s exchange rate fell.
## Inflation target
The central bank must set a credible medium-term inflation target below 15% to restore naira value.
## Fiscal deficits and central bank
The government uses the central bank as a piggy bank for financing fiscal deficits.
## Solutions for naira restoration
Nigeria must reduce recurrent expenditure, broaden tax base, and publish complete fiscal accounts.
## Naira’s exchange rate challenge
The economy must produce more tradable goods to support the naira’s exchange rate.
## Naira as store of value
The naira must regain its value as a store of value through economic stability and low inflation.
## Central bank independence
The central bank must operate independently from government fiscal demands to maintain credibility.
## Inflation control
Nigeria needs to lower inflation to 15% to restore the naira’s purchasing power.
## Fiscal reforms
The government must reduce recurrent expenditure and broaden the tax base to fund public services.
## Naira’s future
The naira can work as a store of value only if the economy produces more tradable goods.
## Key takeaway

Nigeria must lower inflation to 15% and stop government from using central bank for fiscal deficits to restore naira value.