Naira gains competitiveness, offering rare hope for Nigeria’s struggling economy after years of currency volatility and market distortions.
In Lagos, Afreximbank’s Chief Economist, Yemi Kale, addressed The Platform Nigeria event, sharing cautious optimism about recent economic reforms.
Naira Gains Strength
For the first time in twenty years, the naira trades fairly, adjusting naturally to oil price swings and global shifts.
Consequently, exporters, previously hurt by an overvalued currency, now operate in a healthier environment that supports trade and investment growth.
Rising Reserves
Foreign reserves climbed from $32.9 billion at the end of 2023 to over $42 billion by mid-2025, showing clear improvement.
Meanwhile, the naira now trades at ₦1,455 per dollar across official and parallel markets, closing a long-standing gap.
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Bala Moh’d Bello of the Monetary Policy Committee highlighted tighter liquidity and improved transparency as key stabilising factors for the currency.
With reserves covering nearly ten months of imports, Nigeria can manage future economic shocks more effectively than before.
Challenges And Lessons
However, reforms caused short-term pain, as inflation surged after the naira float, raising import costs and straining households and businesses.
Kale cited Egypt’s 2016 reforms, which succeeded when authorities combined currency adjustments with social support measures for vulnerable populations.
He urged Nigeria to expand safety nets, protecting citizens while reforms stabilise markets and strengthen economic foundations.
In conclusion, Kale emphasised that reform demands patience, discipline, and consistent follow-through, yet early signs show a promising economic path.
