Abuja, Nigeria — Central Bank of Nigeria (CBN) Governor Yemi Cardoso highlighted the recent sharp decline in the value of the naira as a potential catalyst for increasing Nigeria’s export competitiveness. Speaking at the Nigerian Economic Summit on Wednesday, Cardoso noted that the currency’s devaluation has positioned Nigerian goods more favorably in international markets.
“While the current situation may not be ideal, it offers a significant opportunity for investors to explore export markets,” Cardoso stated. He encouraged stakeholders to recognize the potential for growth as demand for Nigerian exports is expected to rise due to the lower cost of goods abroad.
In recent trading, the naira has depreciated over 170% in the past year, hovering between 1,685 and 1,700 naira per dollar. Despite this decline, Nigeria has recorded a trade surplus of N6.95 trillion in the second quarter of 2024, primarily driven by a decrease in imports as rising costs make foreign products less accessible.
Cardoso emphasized that the weakened naira can help stimulate Nigeria’s economy by increasing the demand for locally produced goods. “Exporting under these conditions presents a unique opportunity for Nigerian businesses,” he added, urging potential investors to act quickly.
Additionally, Cardoso reaffirmed support for the CBN’s policies, citing positive feedback from the World Bank and other financial institutions. He underscored the importance of staying committed to these strategies to maximize their economic benefits.
As Nigeria navigates the challenges posed by currency fluctuations, the CBN continues to advocate for policies that bolster export growth, aiming to stabilize the naira and enhance the country’s economic outlook.