The Central Bank of Nigeria (CBN) has called on businesses to leverage the opportunities presented by the depreciated naira to boost export activities and strengthen economic growth.
This advice was given by the Deputy Governor of Economic Policy, Muhammad Abdullahi, during his keynote speech at the 11th National Economic Outlook forum, organized by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in Lagos on Tuesday.
Abdullahi emphasized that the unification of Nigeria’s exchange rates, coupled with efforts to stabilize the naira, offers businesses an unprecedented opportunity to drive export-led growth.
He noted that, while the weakened naira has increased import costs, it has simultaneously made Nigerian goods more affordable and competitive in international markets.
Drawing parallels with China’s economic strategy, he said, “Nigeria’s competitive exchange rate can be transformative. Businesses should adopt export-oriented strategies, focus on import substitution to strengthen domestic production, and explore value addition by shifting from raw material exports to processed goods, which hold greater earning potential.”
Highlighting growth sectors, Abdullahi pointed to agriculture, manufacturing, and Nigeria’s burgeoning creative industry, which includes music, film, and digital exports.
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He encouraged businesses to explore international markets and digital platforms to unlock revenue streams. “With reforms in place, declining inflation, and improved financing, the agricultural sector is well-positioned for significant growth,” he added.
He also underscored the importance of Nigeria’s fintech sector in driving economic development, supported by increased mobile money adoption and financial inclusion initiatives.
2024: A Year of Challenges and Opportunities
In his opening remarks, the President and Chairman of the Council, Professor Pius Olanrewaju, reflected on Nigeria’s economic journey in 2024. He acknowledged the challenges of high inflation, which stood at 34.6% in December, driven by insecurity, rising energy costs, and supply chain disruptions. However, he also noted signs of recovery, with Nigeria’s GDP growing by 3.46% in the third quarter of 2024, up from 3.19% in the previous quarter.
“The naira’s depreciation by 40.9% in 2024—ending the year at ₦1,535 to the dollar—was a significant hurdle. Yet, the resilience of key sectors such as ICT, financial services, trade, and creative industries fueled a remarkable contribution of 53.58% to the GDP,” Olanrewaju stated. He highlighted the agriculture sector’s 28.65% contribution to GDP and the oil sector’s 5.57%, praising efforts to diversify the economy.
Quoting Albert Einstein, Olanrewaju remarked, “In the middle of difficulty lies opportunity.” He urged stakeholders to critically assess the economic landscape, identify risks, and strategize for a prosperous 2025.
The Path Forward
Economist and founder of BAA Consult, Biodun Adedipe, also addressed the forum, stressing the importance of inclusive and sustainable economic growth. He highlighted the need to break the cycle of episodic naira devaluations, which are often triggered by weaknesses in Nigeria’s external sector.
Adedipe argued, “Devaluation should align with economic principles—making exports cheaper and more attractive globally. Nigeria must move toward an economy that sustainably supports its currency through robust export growth and reduced import dependency.”
The forum concluded with a call to action for businesses to adapt to the evolving economic realities by embracing innovation, resilience, and a global outlook. These measures, participants agreed, are vital to turning challenges into opportunities in the new year.
