Naira’s comeback: How buying premium Made-in-Nigeria goods can strengthen currency

It was a crisp morning in Lagos when Adamu, a leather goods manufacturer in Kano, received an unexpected call from a distributor in Nairobi. The Kenyan buyer had come across his high-quality leather handbags on social media and wanted to place a bulk order. Excited yet cautious, Adamu realised this was the opportunity he had been waiting for—a chance to take Nigerian craftsmanship beyond its borders.

Across the continent, Rwanda had successfully positioned its textile industry to rival foreign imports, South Africa had turned its automobile sector into a powerhouse, and Egypt had mastered agribusiness exports.

These nations had one thing in common: they invested in producing, consuming, and exporting their own goods, strengthening their economies and stabilisng their currencies. Nigeria, with its vast resources and talent, stands at the threshold of a similar economic revolution

The Link Between Buying Local and Strengthening the Naira

At the heart of a strong currency lies a simple principle: demand for local goods drives up local production, creating jobs, reducing dependence on imports, and ultimately stabilising exchange rates. When more Nigerians buy made-in-Nigeria products, fewer dollars leave the country for imports, preserving foreign reserves. Additionally, as these local industries grow competitive, they can export more under the African Continental Free Trade Area (AfCFTA), bringing in foreign exchange and making the naira stronger.

Nigeria spent over $9 billion on food imports in 2022 alone, according to the National Bureau of Statistics (NBS). If even half of this expenditure had been directed towards locally made goods, the pressure on the naira would have significantly reduced.

The key to making this strategy work lies in five high-impact industries that have the potential to drive economic and societal prosperity: agro-processing, textiles and fashion, automotive, technology, and leather goods.

1. Agro-Processing: Nigeria’s Green Gold

Nigeria is already a leader in agriculture, but to truly benefit, the country must move beyond exporting raw commodities. Processed agricultural products, such as packaged cashew nuts, shea butter, palm oil derivatives, and dried hibiscus flowers, command higher prices in international markets. Ghana earns approximately $2 billion annually from cocoa processing, while Nigeria, a major cocoa producer, lags behind with less than $500 million in cocoa-based exports (International Cocoa Organisation, 2023). By investing in food processing plants and branding agricultural exports as premium African products, Nigeria can bridge this gap.

AfCFTA Opportunity: Nigerian agro-processors can tap into Africa’s fast-growing middle class by exporting packaged food products to regional markets, reducing the continent’s dependence on European imports.

2. Textiles and Fashion: Weaving Prosperity into the Economy

The Nigerian fashion industry has already gained global recognition, with designers showcasing their works in Paris, London, and New York. However, it still imports billions of dollars’ worth of fabric and clothing annually. In 2021, Nigeria imported over $4 billion worth of textiles, while Ethiopia, leveraging local cotton production, exported $110 million in garments the same year (United Nations Conference on Trade and Development, 2022). By boosting textile manufacturing and prioritising the use of Nigerian cotton, the country can export finished garments across Africa, positioning Lagos, Aba, and Kano as textile hubs.

AfCFTA Opportunity: By prioritising local textile production, Nigeria could reclaim a significant portion of the $15 billion African fashion industry (African Development Bank, 2023).

Read also: Nigeria’s local industries push to export made-in-Nigeria goods

3. Automotive: Driving Industrial Growth

Nigeria has a rapidly growing demand for vehicles, yet imports most of them. The country spends over $8 billion annually on vehicle imports (NBS, 2022). Meanwhile, South Africa’s automobile sector contributes over $12 billion to its gross domestic product (GDP) and employs more than 100,000 people (South African Automotive Industry Report, 2023). If Nigeria implements policies favouring local assembly and production, it could significantly reduce import dependency and generate thousands of jobs.

AfCFTA Opportunity: By expanding vehicle production for neighbouring West African markets, Nigeria can leverage its industrial capacity to become the region’s automobile hub.

4. Technology: A Digital Leap for the Naira

Nigeria’s fintech and tech startup ecosystem is already Africa’s largest, with unicorns like Flutterwave and Paystack proving that the country can build world-class digital products.

If Nigerians prioritise homegrown software solutions over foreign alternatives, the country will reduce capital flight and strengthen its technology industry. India built its economy by investing in IT services, making the rupee more resilient. According to the Nigerian Communications Commission (NCC), Nigeria loses over $2 billion annually to foreign software purchases. Redirecting just a portion of this spending to local solutions could significantly strengthen the naira.

AfCFTA Opportunity: With African countries increasingly adopting digital solutions, Nigerian tech firms can scale across the continent, earning revenue in foreign currencies.

5. Leather Goods: Nigeria’s Untapped Goldmine

Kano’s tanneries produce some of the finest leather in Africa, yet Italy and Spain dominate the luxury leather market using raw materials from Nigeria. Instead of exporting raw hides, Nigerians should focus on producing premium leather goods like handbags, shoes, and belts for both local and export markets.

Ethiopia’s leather exports exceeded $133 million in 2022, while Nigeria’s remained under $50 million (Ethiopian Leather Industries Association, 2023). By branding and exporting high-end leather products Nigeria can strengthen the naira.

AfCFTA Opportunity: By branding and exporting high-end leather products to African markets, Africa’s most populous country can turn Kano into Africa’s leather capital, boosting the naira’s value through increased foreign exchange earnings.

Positioning for Export Under AfCFTA

The African Continental Free Trade Area presents a game-changing opportunity for Nigerian industries. By producing competitive, high-quality goods and leveraging trade agreements, Nigeria can become a net exporter to the rest of Africa. To achieve this, businesses must:

• Improve Product Standards: Compete on quality, not just price.
• Invest in Branding: Promote Nigerian-made goods as premium, not second-best.
• Enhance Infrastructure: Efficient logistics and manufacturing hubs will lower costs.
• Strengthen Trade Policies: Government must prioritize incentives for local manufacturers.

Conclusion: A Call to Action

If Nigerians consciously choose to buy locally-made premium products, they will not only strengthen the naira but also create millions of jobs and drive industrial growth. The examples of Ghana, South Africa, and Ethiopia show that this strategy works. The time has come to rewrite Nigeria’s economic story—one made-in-Nigeria purchase at a time.

Will you be part of the movement to restore the naira’s strength?