The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has stated that the weak naira presents a major opportunity for the country to enhance its exports to other nations.
Cardoso made this assertion on Wednesday in Abuja during the Nigerian Economic Summit (NES).
According to the CBN governor, despite the challenges posed by a depreciating currency, there are considerable opportunities for investment.
He explained, “In terms of persuasion, what we need now is to ensure that investments are here. Take, for example, now it may seem like a threat in the sense that the exchange rate has come down so low.
“But that also is an opportunity because what that means is that it can help to boost your exports. This will make Nigeria to become a lot more competitive in the export trade.”
Cardoso encouraged investors to recognise the potential in the current situation, stating, “Things are recalibrating in a particular direction.
“It’s not perfect, but definitely there are opportunities for people to single out and invest.”
He highlighted that with the cost of imports increasing and the relatively low naira, Nigeria could capitalise on export opportunities, saying, “By the time you are exporting out to other countries. I see it happening. Others are doing it, and the interest is growing in leaps and bounds.”
Furthermore, Cardoso echoed the sentiment of the Chief Economist of the World Bank Group, Indermit Gill, emphasising the importance of maintaining current reforms for the next 10 to 15 years to transform Nigeria’s economy.
He noted that both the World Bank and other financial institutions have recognised the CBN’s efforts in economic transformation, stating, “To fully reap the benefits of the policies set in motion, the bank needs to stay on course.”
He added, “I think he [Gill] was basically misunderstood. My understanding of what he said is that the policies that the Central Bank is taking are putting Nigeria on the right track.”
In its latest Africa’s Pulse report, the World Bank identified the naira as one of the worst-performing currencies in sub-Saharan Africa for 2024, noting that the naira has lost about 43 per cent of its value as of August, driven by increasing demand for dollars amid limited inflow.