Weak Naira: CBN Urges Businesses To Leverage Export Opportunities

Weak Naira: CBN Urges Businesses To Leverage Export Opportunities

The Central Bank of Nigeria (CBN) has called on businesses to embrace export-oriented strategies to maximize the potential benefits of the naira’s weakened value…READ MORE…

This appeal was made by the Deputy Governor, Economic Policy, CBN, Muhammad Abdullahi, during his keynote address at the 11th National Economic Outlook: Implications for Businesses in Nigeria 2025, organized by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in Lagos.

The naira, which ended 2024 with a 40.9% depreciation across foreign exchange markets, has faced continued pressure since the harmonization of currency market segments in June 2023.

Abdullahi emphasized the opportunities available to businesses amidst these challenges. He stated, “The unification of exchange rates and a focus on stability create transformative opportunities for export-led growth. Learning from China’s economic model, Nigeria’s competitive exchange rate can position its goods as more affordable and attractive globally, despite increased import costs.”

He outlined strategies for businesses to capitalize on the situation, including:

• Adopting export-oriented strategies in agriculture, manufacturing, and the creative sectors.
• Implementing import-substitution models to enhance local production and reduce reliance on imports.
• Adding value to exports by shifting from raw material exports to processed goods, thereby increasing foreign exchange earnings.

Abdullahi also highlighted the potential of Nigeria’s growing creative sector, such as music, film, crafts, and digital exports, which could unlock vast revenue streams through international markets and digital platforms. He noted that with ongoing reforms, declining inflation, and enhanced financing, the agricultural sector was primed for growth, particularly through processed agricultural exports. Additionally, the fintech sector, bolstered by mobile money adoption and financial inclusion initiatives, remains a driver of economic expansion.

In his opening remarks, CIBN President, Professor Pius Olanrewaju, reflected on Nigeria’s economic performance in 2024. He noted the GDP growth of 3.46% in Q3 2024, up from 3.19% in Q2, signaling gradual recovery despite high inflation of 34.6% as of December 2024 and a naira-dollar exchange rate of ₦1,535/$1.

Olanrewaju praised the resilience of the services sector, which accounted for 53.58% of Nigeria’s GDP in 2024, driven by ICT, financial services, trade, and creative industries. He also highlighted the significant contributions of agriculture (28.65%) and oil (5.57%) to the GDP.

Quoting Albert Einstein, Olanrewaju remarked, “In the middle of difficulty lies opportunity,” urging stakeholders to identify risks, harness opportunities, and strategize for sustainable growth in 2025.

Biodun Adedipe, founder of BAA Consult, also spoke at the event, stressing the importance of inclusive and sustainable economic growth to prevent episodic naira devaluations. He argued that such devaluations, often triggered by external sector weaknesses, could be avoided by aligning economic policies with export-driven strategies to boost global competitiveness.

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