Reforms: Naira could strengthen to N1,300 by year-end

Abdul Rabiu, chairman of BUA Group, said he expects the naira to strengthen further this year as government reforms take hold, projecting that the exchange rate could fall between N1,300 and N1,400 to the dollar by December.

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He said this on Wednesday while speaking with journalists at the State House after meeting President Tinubu.

“I expect that the exchange rate is going to strengthen even further. I expect that the rate should come down to maybe N1,300, N1,400 before the end of the year. And this is something that we should all celebrate,” Mr Rabiu said.

He praised recent measures by the CBN, noting that demand for foreign exchange from the regulator had diminished.

“If I may add, you have seen that the CBN is doing quite a lot, and businesses today do not actually need foreign exchange from the Central Bank of Nigeria. The reliance or need for foreign exchange from the Central Bank has virtually disappeared,” he said.

The naira has swung sharply in recent months after the government unified multiple exchange rates in June 2023 and allowed market forces to play a greater role.

The reforms, part of President Bola Tinubu’s economic agenda, aim to attract foreign investment and restore confidence in Nigeria’s economy.

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The naira, which traded above N1,600 per dollar earlier this year, has since gained momentum, supported by higher oil earnings and tighter monetary policy.

As of Tuesday, the naira traded at N1,518 to the dollar on the parallel market, compared with N1,487.37 on the official rate, according to Central Bank of Nigeria data.

Mr Rabiu said the stronger currency and policy shifts are already easing pressure on businesses. “We also know that companies and businesses alike are able to get FX abroad, using the ATM and credit cards. These are all positives,” he said.

He credited President Tinubu’s administration for creating what he described as a foundation for stability.

“So really, for all of these, we must give full credit to His Excellency and the government, their bold reforms and decisive policies are creating the foundation for a stronger economy, a more stable currency and a better future for businesses and Nigerians alike.”

The billionaire industrialist also pointed to food prices, saying they were beginning to reflect improvements in supply.

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“If you look at the prices of food items last year and what we have today, you’ll see that there is a significant reduction in all the commodities, prices of food items.

So I think we just need to be a bit more patient, clearly, things are getting better, and we must continue to support the government,” he said.

The BUA Group is one of Nigeria’s largest conglomerates, with interests in cement, sugar, and food production.