CBN urges firms to tap weak naira for export gains

The Central Bank of Nigeria (CBN) has encouraged businesses to take advantage of the weak naira to explore export opportunities.

The CBN made this call at the 11th National Economic Outlook: Implications for Businesses in Nigeria 2025, organised by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies in Lagos State.

“The unification of exchange rates, coupled with a focus on exchange rate stability, presents transformative opportunities for businesses,” Muhammad Abdullahi, deputy governor, economic policy at CBN, said while highlighting the benefits of a weakened naira for businesses.

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“Drawing from China’s economic strategy, Nigeria’s competitive exchange rate can drive export-led growth.

“While a depreciated naira may increase import costs, it makes Nigerian goods more affordable and attractive globally,” he said.

“To harness this potential, businesses should adopt export-oriented strategies by targeting sectors with strong export potential such as agriculture, manufacturing and creative industries; implement import-substitution models by strengthening domestic production capabilities and reducing reliance on costly imports; and focus on value addition by shifting from exporting raw materials to processed goods, thereby boosting foreign exchange earnings.”

He further stated the untapped opportunities in Nigeria’s expanding creative sector, including music, film, crafts, and digital exports.

“This sector holds immense potential. Businesses should explore international markets, digital platforms, and global tours to increase revenue,” he said.

He noted that with ongoing reforms, declining inflation, and improved financing, the agricultural sector is poised for growth.

“Emphasising processed agricultural exports can significantly enhance foreign exchange earnings. Similarly, the fintech sector, supported by rising mobile money adoption and financial inclusion initiatives, will continue to drive economic development.”

Pius Olanrewaju, president/chairman of Council at CIBN, during his opening remark reflected on the state of the economy in 2024, describing it as a year marked by significant challenges and opportunities.