Nigerians who are holding onto dollars for speculative reasons are being advised to sell them and convert to naira as the Nigerian currency strengthens. This comes amidst predictions of a growing Nigerian economy.
The naira recently reached N1,250 to the dollar, a gain of 0.8% compared to the previous day’s rate on the black market. This continues a trend that began in February 2024, when the naira was at its weakest point of N1,825 to the dollar.
Social commentator Reno Omokri is a prominent voice urging people to convert their dollars. He believes the naira will continue to appreciate, especially with the upcoming opening of the Dangote Refinery. Omokri argues that domestic production of fuel will significantly strengthen the Nigerian currency.
Omokri’s advice, along with the hashtag #GrowNairaBuyNaija, reflects a wider belief among some economists that the Nigerian economy is headed for positive changes. There is still some debate about how quickly and how much the naira will appreciate, but Omokri’s message adds to the ongoing discussion.
The Central Bank of Nigeria (CBN) has also been implementing policies to strengthen the naira. These include:
- Combining all foreign exchange markets into a single market.
- Reintroducing a system where buyers and sellers can agree on an exchange rate.
- Resuming sales of dollars to currency exchangers.
- Setting limits on how much foreign currency banks can hold.
- Requiring money transfer services to use the market rate when paying out naira.
- Removing restrictions on foreign exchange transactions between banks.
These reforms have helped to reduce volatility in the naira’s exchange rate. Analysts believe that, combined with high interest rates and increased oil production, the CBN’s measures will bring stability to the foreign exchange market.
