CBN Urges Nigerian Businesses to Embrace Exporting Amid Weak Naira

The Central Bank of Nigeria (CBN) has urged businesses to focus on exporting as a strategy to capitalize on the weak state of the naira. During his keynote address at the 11th National Economic Outlook in Lagos, CBN’s Deputy Governor for Economic Policy, Muhammad Abdullahi, emphasized that the recent unification of exchange rates and a focus on exchange rate stability present valuable opportunities for businesses. He suggested that while a weaker naira raises import costs, it makes Nigerian goods more competitive and attractive in global markets, potentially boosting export-led growth.
Abdullahi recommended that businesses adopt export-oriented strategies, particularly in sectors with high export potential such as agriculture, manufacturing, and the creative industries. He also encouraged businesses to implement import-substitution models to reduce reliance on imports and to shift from exporting raw materials to processed goods, which could enhance foreign exchange earnings. Additionally, he highlighted the potential of Nigeria’s growing creative sector, including music, film, crafts, and digital exports, which could benefit from international markets and digital platforms.
Despite these challenges, Abdullahi expressed optimism about sectors like agriculture and fintech. He noted that with ongoing reforms, declining inflation, and increased financing, the agricultural sector could experience significant growth. He also emphasized that the fintech sector, supported by growing mobile money adoption and financial inclusion, would continue to drive economic development in the country.
In his opening speech, Professor Pius Olanrewaju, President of the Chartered Institute of Bankers of Nigeria, reflected on the year 2024, which was marked by both challenges and opportunities. Despite inflation reaching 34.6% in December and a 40.9% depreciation of the naira, the Nigerian economy showed resilience. He pointed out that sectors such as ICT, financial services, trade, and the creative industries played a significant role in the country’s GDP growth, while agriculture remained a vital contributor. Olanrewaju concluded that Nigeria must strategically harness opportunities in 2025 to foster sustainable economic growth.