Obasanjo Renews Call for Single African Currency, Decries Naira’s Collapse

Former President Olusegun Obasanjo has once again called for the creation of a single African currency, warning that the continent’s dependence on the US dollar continues to erode local economies and undermine Africa’s development.

Speaking at a Fireside Chat moderated by CNBC Africa’s Fifi Peters during the ongoing Intra-African Trade Fair (IATF 2025) in Algiers, Algeria, Obasanjo lamented the sharp depreciation of the naira. He recalled that in 1979, one naira exchanged for nearly two US dollars, whereas today, a dollar trades for about ₦1,600.

“What have we done to devalue our currency to this extent?” he asked. “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.”

The former president, who also chairs the IATF Advisory Council, said Africa’s reliance on foreign currencies particularly the dollar and the euro was unnecessary and detrimental to intra-African trade. He commended Afreximbank for promoting the Pan-African Payment and Settlement System (PAPSS), which enables businesses to transact directly in local currencies.

“If Algeria is trading with Uganda, why should we be looking for dollars or euros?” he asked. “The Ugandan trader wants his shillings, not dollars. That is the solution Africa urgently needs.”

Obasanjo traced much of the continent’s economic woes to slavery, colonialism, and the adverse effects of globalisation, which he said were never designed to favour Africa. He urged leaders to build on positive milestones such as the African Continental Free Trade Area (AfCFTA) and Africa’s collective struggle against apartheid.

He stressed that political will must be matched with concrete political action, adding that African-led solutions to conflicts and economic challenges were vital for the continent’s progress.

On Africa’s internal challenges, he warned that poor management of ethnic and cultural diversity continued to fuel conflicts across the continent. “There is no community without the good, the bad, and the ugly. Our task as leaders is to manage diversity inclusively so that no one feels marginalised,” he said.

Despite the obstacles, Obasanjo expressed optimism about Africa’s growing influence. “Global Africa is not shaking the world yet, but it will—from our musicians to our entrepreneurs. We may not be fully there yet, but we will shake the world,” he declared.

He concluded by urging leaders to revive the vision of Africa’s founding fathers who believed unity was the key to the continent’s strength. “The IMF, the World Bank, the United Nations all these institutions were created before most of Africa was independent. They were not designed for us. That is why we must design our own systems, including a single African currency, to build the future we deserve,” Obasanjo said.