Weak naira has certain advantage – CBN Gov

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said weak naira presents an opportunity for the country to boost its exports to other nations. Cardoso spoke Wednesday in Abuja during the Nigerian Economic Summit (NES). According to the CBN governor, there are opportunities for people to invest despite the weak currency. […]

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said weak naira presents an opportunity for the country to boost its exports to other nations.

Cardoso spoke Wednesday in Abuja during the Nigerian Economic Summit (NES).

According to the CBN governor, there are opportunities for people to invest despite the weak currency.

He said: “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. I just want to encourage people to say that the opportunities are here. Things are recalibrating in a particular direction. It’s not perfect, but definitely there opportunities for people to single out and invest.

“By the time you are exporting out to other countries with the cost of import here and the relatively low naira, you will have a situation where you have to do things like that. And I see it happening. Others are doing it and the interest is growing in leaps and bounds.”

Cardoso emphasised the position of the Chief Economist of the World Bank Group, Indermit Gill, that the country must maintain its current reforms for the next 10 to 15 years to transform its economy.

He further disclosed that not only the World Bank but other financial institutions as well as rating agencies have commended the apex bank’s effort in transforming the economy.

Cardoso therefore stated that to fully reap the benefits of the policies set in motion, the bank needs to stay on course.

He said: “The issue of the World Bank Chief Economist. I wasn’t here. But I read the speech. To be honest, my interpretation wasn’t how others perceived it. I think he 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.

“Frankly, I did not mention the World Bank when I said earlier that if you look at the rating agencies and other international financial institutions, it’s all the same thing. And they are all saying the same thing. And I doubt that they might all be wrong.”

In its latest edition of Africa’s Pulse report, the World Bank listed naira among the worst-performing currencies in sub-Sahara Africa in 2024.

It showed that the naira is at par with the Ethiopian Birr, and South Sudanese Pound in terms of decline in the region.

The report said the continued increase in the demand for dollars and limited dollar inflow is responsible for naira depreciation in the last months.

According to the report, as of August, the naira lost about 43 percent.