The Central Bank of Nigeria (CBN) has urged Nigerian businesses to focus on export activities as a strategic response to the challenges presented by the weakened naira.
This call was made by the Deputy Governor of Economic Policy at the CBN, Muhammad Abdullahi, during his keynote address at the 11th National Economic Outlook: Implications for Businesses in Nigeria 2025, organised by the Chartered Institute of Bankers of Nigeria (CIBN) Centre for Financial Studies in Lagos State.
The naira has faced significant depreciation, concluding 2024 with a 40.9% loss across foreign exchange markets, exacerbated by the harmonisation of exchange rate market segments in June 2023.
Abdullahi highlighted that while the naira’s depreciation increases import costs, it also presents opportunities for Nigerian businesses to become more competitive in global markets.
“The unification of exchange rates, coupled with a focus on exchange rate stability, presents transformative opportunities for businesses. Drawing from China’s economic strategy, Nigeria’s competitive exchange rate can drive export-led growth,” Abdullahi stated.
He went on to explain that a weaker naira makes Nigerian products more affordable and attractive to international buyers.
To harness these opportunities, Abdullahi encouraged businesses to adopt export-oriented strategies. He suggested targeting sectors with strong export potential, such as agriculture, manufacturing, and the creative industries.
He also recommended implementing import-substitution models, strengthening domestic production capabilities, and reducing reliance on costly imports.
Additionally, he urged businesses to focus on value addition, shifting from the export of raw materials to processed goods, which would help boost foreign exchange earnings.
The creative sector, encompassing music, film, crafts, and digital exports, was singled out as a key area for growth. Abdullahi pointed out the untapped potential in this sector, encouraging businesses to explore international markets, digital platforms, and global tours to enhance their revenue streams.
“Businesses should explore international markets and digital platforms to increase revenue,” Abdullahi added.
He also highlighted the growing opportunities in Nigeria’s agricultural sector, noting that with ongoing reforms, declining inflation, and improved financing, the sector is well-positioned for growth. Emphasising processed agricultural exports could significantly enhance Nigeria’s foreign exchange earnings, he said.
The fintech sector, boosted by increasing mobile money adoption and financial inclusion initiatives, was another area noted for continued economic development.
In his opening remarks, the President and Chairman of Council at the CIBN, Prof. Pius Olanrewaju, reflected on Nigeria’s economic situation in 2024, describing it as a year marked by both challenges and opportunities.
Economist and founder of BAA Consult, Biodun Adedipe, also addressed the gathering, underscoring the importance of pursuing inclusive, sustainable, and sustained economic growth for Nigeria’s long-term development.
As Nigeria faces economic hurdles due to the weakened naira, Abdullahi’s message to businesses is clear: adapting to an export-driven approach, with a focus on high-potential sectors, could be the key to navigating these challenges and unlocking growth opportunities for the nation.
