Export promotion will stabilise naira – Adedipe

Accelerated manufacturing and focused export promotion will bring some stability to the naira exchange rate, said Biodun Adedipe, chief consultant, B. Adedipe Associates Limited/Chairman, Chartered Institute of Nigeria (CIBN) research committee.

He said this at the 9th roundtable session on national economic outlook, organised by the CIBN in Lagos.

He foresees exchange rate at the official foreign exchange market likely at about N480/$1 and roadside at N705/$1.

Naira on Tuesday weakened against the dollar, losing 0.13 percent (N1) to close at N746 per dollar as against N745/$1 closed on Monday.

At the Investors and Exporters (I$E) forex market, Nigeria’s official foreign exchange market, the Naira remained unchanged at N461.50 per dollar.

In his presentation at the 9th roundtable session on national economic outlook, organised by the Institute in Lagos, Adedipe foresees positive Gross Domestic (GDP) growth in 2023, slight improvement over the expected 3.19 percent for 2022, and expected to improve further to 3.27-3.32 percent.

According to him, the inflation rate is expected to moderate to 17.76 percent but still in double digits. He said monetary policy normalisation could start as early as second quarter, but assured for second half (H2), with downward adjustment of the monetary policy rate certain for H2.

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He said bank lending rate will remain double digit, but continue to respond to the rate of inflation, adding that improvement in infrastructure will begin to positively impact the of doing business.

The CIBN is very optimistic about Nigeria’s outlook in 2023, saying better days lie ahead for the country’s economy.

This is especially because this year will usher in a new government and leadership structure in the nation.

“We need to gain insight into the impact of several economic indices to help us undertake a comprehensive assessment of the opportunities, challenges and indeed the threats that businesses may encounter during the current year,” Ken Opara, president/chairman of council, CIBN, said on Tuesday.

He said every organization needs to be fortified with adequate information to give them insights into what the New Year holds. This, he said, will undoubtedly serve as a guide in making informed decisions critical to the growth of businesses and in reviewing strategic plans as the need may arise.

“As we look forward with great expectations and more growth in the banking industry and the economy generally, there will be a need to implement a comprehensive and system-driven economic agenda which requires a set of reforms that ensure a conducive and enabling environment for generating economic benefits and prosperity,” Opara said.