Central Bank Governor Yemi Cardoso has highlighted the sharp drop in the value of the naira as an opportunity for Nigeria to increase its exports and strengthen its economy. Speaking at the Nigerian Economic Summit in Abuja on Wednesday, Cardoso explained that while the naira’s devaluation presents challenges, it also offers a competitive edge for Nigeria in export trade.
Cardoso noted that the weaker naira has made Nigerian products more attractive to international markets, with many investors already taking advantage of the situation. “The current exchange rate may seem like a threat, but it also presents an opportunity. It makes our exports more competitive, and this could significantly boost our presence in international markets,” he stated.
He encouraged investors to recognize and capitalize on the potential for growth. “This is a recalibration period. Although it’s not a perfect situation, there are clear opportunities for those willing to invest. Exporting with the current low naira value means greater demand for Nigerian goods abroad, and we are already seeing increased interest.”
Read also:
- Khalifa fund displays over 15 SMEs at Emirates forum
China’s SME landscape sees steady growth, innovation drive- Oyo unveils export-ready yam, cassava, plantain flour to boost non-oil trade
- High interest rates hurting SMEs, reps tell CBN
- DBN targets N1.8tr loan portfolio, 2m jobs in 5yr MSME plan
Cardoso also addressed the positive feedback Nigeria has received from international financial institutions and rating agencies, including the World Bank, regarding the Central Bank’s ongoing policies. He stressed the importance of staying the course to fully realize the benefits of these economic strategies.
“Although there was some misunderstanding about the World Bank Chief Economist’s remarks, the core message was that Nigeria is on the right track. Our policies are aligning us with positive growth trends recognized by global financial institutions, and they all share the same optimistic view,” Cardoso said.
Despite the naira’s depreciation of over 170% in the past year, trading between 1,685/$ and 1,700/$, Nigeria recorded a significant trade surplus of N6.95 trillion in Q2 2024. The surplus was driven by the weakened naira, which reduced imports as foreign goods became more expensive, while simultaneously enhancing Nigeria’s export competitiveness.
Discover more from SMALL BUSINESS INSIGHTS
Subscribe to get the latest posts to your email.
