The Central Bank of Nigeria (CBN) has encouraged businesses to adopt export-oriented strategies to capitalize on the weak naira, which depreciated by 40.9% in 2024 and ended the year at ₦1,535/$1. In his remark at the 11th National Economic Outlook: Implications for Businesses in Nigeria 2025, organized by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies in Lagos, Muhammad Abdullahi, Deputy Governor of Economic Policy, emphasized that the unification of exchange rates and a focus on stability presents opportunities for export-led growth.
This call highlights the increasing necessity for businesses to reconsider their business strategies and capitalize on the possible advantages a depreciating currency offers on the global scene. The naira, which has faced significant pressure in recent months, continues to struggle against major international currencies. As a result, import prices have gone up, which has fueled Inflation and reduced domestic purchasing power. Nonetheless, the CBN maintains that this challenge also presents a unique opportunity for Nigerian businesses to become more competitive in global markets.
Businesses urge to explore high-potential industries.
Drawing inspiration from China’s economic strategy, he explained that while a depreciated Naira raises import costs, it boosts the competitiveness of Nigerian goods on the international market. Abdullahi stressed the significance of value addition, such as exporting processed goods rather than raw materials, to increase foreign exchange earnings and encouraged companies to explore high-potential industries like manufacturing, creative industries, and agriculture. Additionally, he cited the expanding creative industry, which includes digital exports, music, and cinema, as a major avenue for global market expansion.
Moreover, the central bank call falls in line with its broader monetary and economic goals. By promoting Export expansion, the nation’s reliance on oil as its main source of income may be lessened and pressure on the naira could be relieved. Diversifying export goods and services could help Nigeria develop a more robust Economy that can withstand global shocks. Nigeria’s export performance in 2024 already paints a promising picture of the potential for economic transformation through trade.
Central bank’s export-driven strategy and future prospects.
Recent data from the National Bureau of Statistics (NBS) underscores the significant role of exports in Nigeria’s economy. The country’s total merchandise Trade in the third quarter of 2024 stood at ₦35,160.44 billion, an 81.35% increase over the same period in 2023. Exports made up 58.27% of this commerce with a value of ₦20,486.39 billion, 98% more than in the third quarter of 2023. Non-oil exports, valued at ₦7.08 trillion, accounted for 34.56% of this figure. Moreover, the CBN’s push for increased exports come in the backdrop of previous year positive trade performance.
Encouraged by the depreciation of the naira, the CBN’s export-driven strategy aims to open up more prospects for Nigerian businesses. A weaker naira makes domestically produced goods and services more competitively priced on the global market, encouraging demand for Nigerian exports. If the current export trends continue with an added 20% increase in 2025 due to the CBN’s policies, non-oil export Revenue alone could surpass ₦8.5 trillion, further diversifying the economy and reducing its vulnerability to global oil price shocks.
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However, for businesses to successfully implement export-driven strategies, they must address major barriers including raising product quality, adhering to global standards, and embracing contemporary technologies. Businesses that can quickly adjust and adopt export-oriented models stand to reap a lot of benefits and support the stability and expansion of the nation’s economy as a whole. The country sees the current state of affairs as both a challenge and an opportunity to change its current economic narrative and realize its enormous potential.