By Hussein J-Isah
The Governor of the Central Bank of Nigeria, CBN, Yemi Cardoso, has revealed that the sharp drop in the value of the domestic currency is an opportunity for the country to boost its exports to other nations of the world.
The CBN governor made the declaration at the Nigerian Economic Summit on Wednesday in Abuja, the Federal Capital Territory.
Cardoso highlighted the fact that drop in the value of Naira made it more competitive for export trade and investment, saying that some investors are taking advantage of this merit already.
Although he noted that the trend may not be ideal, the current reality still provides a window for investors offers to identify and pursue investment opportunities.
Cardoso stated: “In terms of persuasion, what we need now is to ensure that investments are here. Take, for example, now it may seem like a threat in the sense that the exchange rate has come down so low. But that also is an opportunity because what that means is that it can help to boost your exports.
“This will make Nigeria to become a lot more competitive in the export trade. I just want to encourage people to say that the opportunities are here. Things are recalibrating in a particular direction. It’s not perfect, but definitely there opportunities for people to single out and invest.
“By the time you are exporting out to other countries with the cost of import here and the relatively low naira, you will have a situation where the demands of your goods are much more. And I see it happening. Others are doing it and the interest is growing in leaps and bounds.”
Ironically, as the value of the naira dropped by over 170% in the past year, trading between 1,685/$ and 1,700/$ in the foreign exchange market, Nigeria has recorded a significant trade surplus, building up to N6.95 trillion in the second quarter of 2024.
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