By Mercy Okpe.
In a recent survey conducted by the Central Bank of Nigeria (CBN), businesses are anticipating a stronger Naira in 2025. The Business Expectations Survey (BES) for December 2024 showcased an optimistic outlook among respondent firms, with expectations of a steady appreciation of the local currency in the coming months.
According to the report posted on the CBN’s website, businesses forecast an increase in the value of the Naira in the current month, next month, and the next three months, with significant appreciation projected within the next six months. This positive sentiment was driven by expectations of exchange rate improvements, heightened business activity, and increasing total orders as the economy heads into 2025.
The survey indicated a high level of confidence in the macroeconomy across all sectors, with the agriculture sector leading the way with the highest levels of optimism and ambitious expansion plans for January 2025. Projections suggested a notable appreciation of the Naira, with percentages rising from 17% in December 2024 to 29% by mid-2025.
These positive developments are seen as a direct result of the CBN’s recent forex reforms, which have played a crucial role in stabilising the market and boosting confidence among market participants. Furthermore, the survey highlighted broad optimism about macroeconomic conditions, with businesses expressing confidence in improved financial conditions, increased orders, and higher levels of activity across key sectors.
CBN Governor Olayemi Cardoso emphasized the tangible outcomes of the forex reforms during a recent economic summit, noting the positive impact on market transparency and investor confidence. The Naira’s increased competitiveness is seen as offering significant opportunities for exports and local production.
The Naira closed at N1,533.26 to the dollar at the official CBN window, marking a positive trend in exchange rates. Cardoso also highlighted the success of reducing disparity between bureau de change rates and official rates, ensuring a more stable forex market.
Looking ahead, Cardoso expressed confidence in the positive outcomes of recent initiatives, such as the introduction of non-resident BVN accounts, to deepen engagement with the Nigerian diaspora. With over $6 billion in foreign capital inflows and external reserves exceeding $40 billion in 2024, the governor noted renewed investor confidence and a solid foundation for sustained economic growth.
Overall, the CBN’s efforts to strengthen mechanisms and enforce best practices in the forex market are expected to yield further positive outcomes in the future, signaling a promising outlook for the Nigerian economy.
