That fuel subsidy regime that wrecked the economy would be remove was inevitable. The mismanagement of the economy via unproductive fuel subsidy for decades alongside forex exchange policy that created distortions in the economy.

Nigeria’s current economic struggles are deeply tied to past decisions that created opportunities for exploitation.

In 2016, when the CBN floated the naira to stabilize the economy, the black market swiftly reacted, causing a rapid decline in the exchange rate. Instead of committing to the free float, the CBN introduced multiple exchange rates for “critical transactions,” such as school fees and imports. What followed was a wave of round-tripping—forex bought at the official rate and sold at the black market rate for massive profits. This led to quick wealth accumulation for a few while depleting the nation’s reserves and harming the economy. In the process, productive sectors were neglected, and the naira weakened.

The exploitation of these policy gaps is part of what’s dragging the economy down today, showing that when loopholes are left open, the cost is borne by the whole nation.

Karim Lala writes from Egbeda