The Central Bank of Nigeria (CBN) has encouraged businesses to embrace export-driven strategies to capitalize on the weak naira, positioning the currency’s depreciation as an opportunity to enhance global competitiveness.
Speaking at the 11th National Economic Outlook event organized by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies in Lagos, CBN Deputy Governor for Economic Policy, Muhammad Abdullahi, highlighted the potential benefits of the naira’s depreciation.
“The unification of exchange rates, paired with a focus on exchange rate stability, offers transformative opportunities for businesses,” Abdullahi stated. Drawing parallels with China’s export-led strategy, he explained that a competitive exchange rate can drive export growth, even as it raises import costs.
Abdullahi outlined several strategies for businesses to thrive under current conditions:
1. Adopt export-oriented models: Focus on sectors like agriculture, manufacturing, and creative industries.
2. Strengthen import substitution: Enhance domestic production to reduce dependence on costly imports.
3. Pursue value addition: Shift from raw material exports to processed goods to boost foreign exchange earnings.
He also emphasized the untapped potential of Nigeria’s creative industries, including music, film, crafts, and digital exports, urging businesses to explore international markets and digital platforms. Abdullahi further highlighted the fintech sector’s role in driving economic growth through financial inclusion and mobile money adoption, alongside opportunities in agriculture for processed exports.
Economic Challenges and Opportunities
Reflecting on Nigeria’s economic performance in 2024, Chartered Institute of Bankers President, Professor Pius Olanrewaju, noted that despite significant challenges, the economy displayed resilience. He cited a GDP growth of 3.46% in Q3 2024, up from 3.19% in Q2, as evidence of recovery amidst global and domestic pressures.
However, inflation remained a major concern, reaching 34.6% by December 2024, driven by insecurity, rising energy costs, and supply chain disruptions. The naira also depreciated significantly, ending 2024 at 1,535/$1, reflecting a 40.9% loss.
Despite these hurdles, Olanrewaju praised strides in economic diversification, with the services sector contributing 53.58% to GDP growth, followed by agriculture at 28.65% and the oil sector at 5.57%.
“These achievements epitomize Nigeria’s ability to turn challenges into opportunities,” Olanrewaju said, urging stakeholders to critically assess the economic landscape as 2025 unfolds.
Inclusive Growth as a Solution
Economist and founder of BAA Consult, Biodun Adedipe, underscored the need for inclusive and sustainable economic growth. He warned against episodic naira devaluation, often driven by a weak external sector and rising import demands, advocating instead for a strategy where devaluation boosts exports.
“As we move away from these reactive measures, we must focus on making exports cheaper and expanding our global market share,” Adedipe emphasized.
The event reinforced the message that while Nigeria faces considerable economic challenges, there are actionable strategies for businesses to thrive, turning current difficulties into long-term opportunities for growth.
