Embracing Export as a Growth Strategy
The Central Bank of Nigeria (CBN) has encouraged Nigerian businesses to capitalize on the weakened naira by venturing into export activities. This appeal was made by the Deputy Governor of Economic Policy, CBN, Muhammad Abdullahi, during his keynote address at the 11th National Economic Outlook: Implications for Businesses in Nigeria 2025, hosted by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies in Lagos.
The naira, which ended 2024 with a 40.9 per cent depreciation, has faced persistent challenges following the harmonisation of exchange rate markets in June 2023. Abdullahi noted that while the currency’s devaluation increases import costs, it simultaneously makes Nigerian goods and services more competitive in global markets.
Unlocking Export-Led Growth
Highlighting the opportunities presented by the naira’s depreciation, Abdullahi drew parallels with China’s economic strategy, stating, “The unification of exchange rates, coupled with a focus on exchange rate stability, presents transformative opportunities for businesses. A competitive exchange rate can act as a catalyst for export-led growth.”
He emphasized the vast untapped potential in various Nigerian sectors, particularly:
- Creative Sector
Abdullahi called attention to Nigeria’s thriving creative industry, including music, film, crafts, and digital exports, as a lucrative avenue for revenue generation. He urged businesses to explore international markets, digital platforms, and global tours to increase their global footprint. - Agriculture
With ongoing reforms and a decline in inflation, Abdullahi predicted significant growth in the agricultural sector. He stated, “Emphasising processed agricultural exports can significantly enhance foreign exchange earnings.” - Fintech Sector
He noted that the rising adoption of mobile money and financial inclusion initiatives positions the fintech industry as a driver of economic development.
Reflections on Economic Trends
In his opening remarks, the President and Chairman of Council at the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju, reflected on the challenges and opportunities of the Nigerian economy in 2024. He acknowledged the economic difficulties brought by currency depreciation but pointed to reforms aimed at stabilising the economy.
Economist and founder of BAA Consult, Biodun Adedipe, reinforced the need for Nigeria to focus on inclusive, sustainable, and sustained economic growth during his presentation. Adedipe advocated for strategic interventions to address economic disparities while fostering innovation and industrial expansion.
Leveraging Opportunities for Economic Advancement
The CBN emphasized that businesses must adapt and innovate to harness the potential benefits of a weaker naira. Abdullahi called on businesses to diversify their revenue streams by exploring export markets, leveraging digital platforms, and prioritizing value-added production to attract international buyers.
He concluded by urging entrepreneurs and investors to consider the long-term opportunities available in Nigeria’s evolving economic landscape, asserting that strategic reforms and a robust export strategy could position the nation as a formidable player in global trade.
Looking Ahead
The session closed with a renewed focus on actionable steps for businesses to thrive in the current economic climate. As Nigeria continues to implement structural reforms, the CBN and economic experts believe that fostering a culture of exports, enhancing financial inclusion, and leveraging technology will be pivotal in driving economic resilience and growth in 2025 and beyond.
