In a recent address at the Nigerian Economic Summit in Abuja, Central Bank Governor Yemi Cardoso emphasized that the significant decline in the value of the naira could serve as a pivotal opportunity for Nigeria to enhance its export trade.
Cardoso pointed out that the naira’s devaluation has rendered Nigerian goods more competitive in international markets, with numerous investors already capitalizing on this situation. He acknowledged that while the current economic climate poses challenges, it simultaneously presents avenues for investment and growth.
“In terms of persuasion, what we need now is to ensure that investments are here. While the low exchange rate may appear threatening, it also opens doors for boosting exports,” Cardoso stated.
He encouraged stakeholders to recognize the potential for growth, noting, “Nigeria is becoming increasingly competitive in export trade. Although the situation is not perfect, there are significant opportunities for individuals to identify and invest.”
Cardoso elaborated on the benefits of exporting in a low-naira environment, suggesting that increased demand for Nigerian goods could follow. “As we export to other countries, the cost of imports and the relatively low naira will create a scenario where the demand for our goods rises. I see this happening, and interest is growing rapidly,” he added.
Central Bank Policies on the Right Track
In addition to discussing export opportunities, Cardoso reaffirmed the World Bank’s support for the Central Bank’s policies, asserting that they are steering Nigeria in the right direction. He noted that not only the World Bank but also various financial institutions and rating agencies have praised the apex bank’s efforts to transform the economy.
He stressed the importance of maintaining the current course to fully realize the benefits of these policies. “Regarding the World Bank Chief Economist’s remarks, I believe he was misunderstood. My interpretation is that the Central Bank’s policies are indeed putting Nigeria on the right track,” Cardoso explained.
“I did not specifically mention the World Bank earlier, but it’s clear that rating agencies and other international financial institutions share the same perspective, and I doubt they could all be mistaken,” he concluded.
