Emmanuel OchayiThe Deputy Governor of Economic Policy at the Central Bank of Nigeria (CBN), Muhammad Abdullahi, has called on Nigerian businesses to embrace export-oriented strategies to harness the opportunities presented by the weak naira. Speaking on Tuesday at the 11th National Economic Outlook in Lagos, Abdullahi emphasised that a competitive exchange rate could be a game-changer for the nation’s economy.
“The unification of exchange rates and the focus on exchange rate stability offer transformative opportunities for businesses in Nigeria,” Abdullahi said. “If we look at countries like China, a competitive exchange rate has been pivotal in driving export-led growth. For Nigeria, this is an opportunity we must seize. A depreciated naira may increase import costs, but it also makes Nigerian goods more affordable and attractive globally.”
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Abdullahi outlined sectors that businesses should focus on to capitalise on the naira’s weak state. He said:
“First, we must adopt export-oriented strategies. Sectors like agriculture, manufacturing, and the creative industries have immense export potential. Second, we need to implement import-substitution models by strengthening domestic production and reducing reliance on costly imports. Finally, we should explore value addition by shifting from raw material exports to processed goods. This will enhance our foreign exchange earnings.”
He also highlighted the growing opportunities in Nigeria’s creative sector. “Music, film, crafts, and digital exports hold vast potential. Businesses should explore international markets, digital platforms, and global tours to boost revenue,” he added.
Abdullahi said the agricultural sector, bolstered by reforms and declining inflation, could significantly improve Nigeria’s foreign exchange reserves through processed agricultural exports. “Fintech will also continue to drive economic growth, supported by mobile money adoption and financial inclusion initiatives,” he stated.
Economic Gains in 2024 Amid Challenges
The President/Chairman of the Council of the Chartered Institute of Bankers of Nigeria, Professor Pius Olanrewaju, also spoke during the event. He reflected on the challenges and opportunities of 2024 and their implications for the future.
“Nigeria’s economy grew by 3.46 percent in the third quarter of 2024, up from 3.19 percent in the second quarter. This signals a gradual recovery despite global and domestic pressures,” Olanrewaju explained. “However, inflation remains a concern, standing at 34.6 percent as of December 2024. Factors like insecurity, energy costs, and supply chain disruptions have contributed to this trend.”
Olanrewaju also highlighted the naira’s performance, noting its depreciation against the dollar. “The exchange rate between the naira and the dollar closed the year at 1,535/$1, a 40.9 percent loss for the naira in 2024. Despite these challenges, efforts toward economic diversification have been remarkable,” he said.
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Olanrewaju emphasised the contributions of various sectors to Nigeria’s GDP. “The services sector accounted for 53.58 percent of the GDP in 2024, reflecting the growing influence of ICT, financial services, trade, and creative enterprises. The agriculture sector contributed 28.65 percent, while the oil sector contributed 5.57 percent,” he noted.
He concluded with a call for strategic planning: “These achievements show Nigeria’s resilience. As we step into 2025, we must critically examine the economic landscape, identify risks, harness opportunities, and strategise for the future.”
Economists Call for Inclusive Growth
Biodun Adedipe, founder of BAA Consult and a notable economist, stressed the importance of sustainable economic growth during his presentation.
“To move away from the cycle of naira devaluation, we must focus on inclusive and sustained economic growth,” Adedipe said. “Devaluation is often triggered by a weak external sector and the demand for foreign currency to pay for imports. Instead of reactive measures, we need a proactive approach that aligns with global economic principles.”
Adedipe urged businesses to take advantage of the current economic situation. “The naira’s depreciation should not only be seen as a challenge. It’s also an opportunity to make our exports cheaper and more competitive globally,” he added.
Looking Ahead
The weak naira has presented both challenges and opportunities for Nigeria’s economy. As the Central Bank of Nigeria and economists highlight export-led strategies and sectoral growth, businesses are encouraged to align their operations with these recommendations. The goal, they say, is to create a more resilient economy capable of turning difficulties into opportunities.
With strategic reforms and private-sector participation, experts believe that Nigeria can leverage the naira’s current state to drive export growth, reduce import dependency, and achieve sustainable economic development.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
