President Buhari has finally allowed the embattled naira to trade freely in a move to control the currency crisis in Africa’s most populous nation.
The new system will come into effect on 20 June and is expected to lead to a significant devaluation of the naira.
The fixed currency rate had created a vast black market for US dollars and squeezed the country’s economy.
Nigeria’s central bank had long been expected to to allow the naira to be more flexible and trade at a market-driven rate.
The naira is fixed at 197 to the US dollar, but the black market rate has soared to 370 in recent months.
The currency fix was introduced in February 2015 to stop the naira from falling when lower oil prices sparked trouble for Nigeria’s economy.
But a prolonged period of holding a currency at an artificial level often has a disruptive effect as foreign companies become reluctant to import goods when they are paid at distorted levels.