The boss of the Central Bank, Yemi Cardoso, said that the naira, Nigeria’s money, is not worth as much anymore. But, this might help Nigeria sell more stuff to other countries.
Cardoso talked about this at a big meeting in Abuja called the Nigerian Economic Summit.
He mentioned that because the naira is cheaper, Nigeria’s things can be sold for a better price to other places. Some people are already starting to do this.
Cardoso admitted that the situation isn’t easy, but there’s a chance for people to find ways to invest and make money.
“We need to make sure that investments come to Nigeria. It may seem bad that the naira’s value is low, but it means we can sell our goods cheaper to others. This makes Nigeria better at trading with other countries. I want to let everyone know there are chances here. Things are changing, it’s not perfect, but people can find openings to invest.”
“When you sell to other countries, and because our naira is low, people will want to buy more of our things. This is already happening as more people get interested,” Cardoso explained.
Central Bank’s Good Decisions
Cardoso also mentioned that the World Bank thinks the Central Bank is making good choices.
Other big finance groups and rating agencies also praise the Central Bank for helping the economy.
Cardoso said the bank should keep following its plans to see full benefits.
“I read a speech from the World Bank Chief Economist. I believe the policies we have are putting Nigeria on a good path.”
“Rating agencies and other finance groups also agree. They all say the same thing, and it’s unlikely they’re all wrong,” Cardoso added.
Things You Should Know
The naira lost 170% of its value in the past year. It now trades between 1,685 naira and 1,700 naira for one dollar in the market. Still, Nigeria made a big trade profit of N6.95 trillion in the second quarter of 2024.
- This profit happened mostly because the naira is weak and fewer things are being imported due to higher costs.
- Lots of people think that the weak naira is a chance to sell more Nigerian goods, which brings in more money from other countries to help balance the naira.
- The CBN governor said that a cheaper naira makes exports stronger, giving Nigerian sellers an edge in global trade.