Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has expressed optimism about the potential benefits of the weakened naira, stating that it presents an opportunity to boost exports and increase Nigeria’s competitiveness on the global stage. Speaking at the Nigerian Economic Summit (NES) in Abuja on Wednesday, Cardoso highlighted the potential for investors to take advantage of the current economic landscape despite the depreciation of the currency.
Cardoso pointed out that while the naira’s decline in value may seem like a threat, it also creates an environment for exporters to thrive. “The exchange rate coming down so low can help boost exports,” he said. “This will make Nigeria more competitive in the export trade. The opportunities are here, and things are recalibrating in a particular direction.”
He encouraged investors to explore the possibilities of the changing currency landscape, emphasizing that while the situation may not be perfect, there are growing opportunities for investment. “By the time you are exporting to other countries with the cost of imports here and the relatively low naira, you will find that there are significant opportunities. Others are already taking advantage of this, and the interest is growing rapidly,” Cardoso added.
The naira has seen significant depreciation since the CBN’s decision on June 19, 2023, to unify all segments of the foreign exchange (FX) markets. Between May 29, 2023, and October 16, 2024, the naira depreciated by 257.2 percent in the official market, moving from N464.51 to N1,659.69 per dollar. In the parallel market, the naira fell from N762/$1 to N1,690/$1 over the same period.
Cardoso acknowledged the economic challenges posed by the naira’s depreciation but stressed that Nigeria’s recalibrated economic environment presents new avenues for growth, particularly in export-oriented sectors.
With global demand for various commodities rising, he urged Nigerian businesses to leverage the weaker naira to increase exports, thereby improving the country’s trade balance and strengthening its position in international markets.
