The value of Nigeria’s export may rise to at least N41.99tn per year following the Central Bank of Nigeria, CBN floating of the naira.
The apex bank had last Wednesday directed Deposit Money Banks to remove the rate cap on the naira at the official Investors and Exporters’ Window of the foreign exchange market, to bridge the gap between the official and parallel market rates of the naira.
Following the move, the naira fell from its 471/dollar to 664.04/dollar and closed the week later at N663.04/dollar.
The weakening of the naira against the dollar means exporters, especially the Federal Government, will make more revenue (in naira terms) from exports’ dollar proceeds.
According to the International Trade Center, Nigeria’s total export in 2022 was $63.34bn.
In January, the Group Chief Executive Officer, Nigerian National Petroleum Company Limited, NNPCL Mele Kyari, stated that the country could achieve 2.2million barrels per day of crude oil production in 2023.
The CBN’s move came after President Bola Tinubu made a call for the unification of exchange rates during his May 29 inauguration speech.
The latest CBN move is expected to increase the government’s revenue, which has been on free fall for a while.
