Business
Economists Predict Positive Impact of Naira Appreciation on Inflation and Import Prices
Nigerian economists are optimistic that the recent appreciation of the Naira against the U.S. dollar, if sustained, could significantly reduce the cost of imported goods and curb the country’s headline inflation, which stood at 33.88% in October 2024.
Gbolade Idakolo, Chief Executive Officer of SD & D Capital Management, and Prof. Godwin Oyedokun of Lead City University, Ibadan, shared these insights on Monday.
The Naira’s exchange rate improved to N1,538.50 per dollar on December 9, 2024, from N1,740 a month earlier. This represents a gain of N201.50 in the official market, despite slight fluctuations in rates at the start of the week.
This progress follows the Central Bank of Nigeria’s (CBN) introduction of the Electronic Foreign Exchange Matching System (EFEMS), aimed at fostering transparency and reducing market distortions. The platform has reportedly curbed speculative trading in the parallel market, bolstering confidence in the Naira’s stability.
Key Perspectives on the Naira’s Strengthening
Gbolade Idakolo described EFEMS as a “game changer” for its transparency and effectiveness in unifying forex bidding platforms. He emphasized that the system had diminished speculative activities in the parallel market, leading to a stronger Naira.
He highlighted the positive implications for importers, noting that the reduction in import duty exchange rates would decrease clearing costs, which are a significant factor in determining the prices of imported goods.
“The recent drop in exchange rates for import duties is a step in the right direction. Lower clearing charges will lead to reduced prices for imported goods, benefiting consumers,” Idakolo stated.
However, he urged the CBN to maintain strict regulatory oversight of banks, Bureau De Change operators, and other market players to ensure the sustainability of the gains.
Prof. Godwin Oyedokun attributed the Naira’s appreciation to increased FX inflows, reduced dollar demand, and strategic CBN interventions. He agreed that lower exchange rates for import duties could indirectly lower prices of imported goods, provided importers pass on the savings to consumers.
However, Oyedokun cautioned that several factors could limit the impact of the Naira’s appreciation on imported goods, including:
- Global supply chain disruptions that may inflate costs.
- Domestic economic conditions, such as inflation and government policies.
- Importer behavior, as some importers might prioritize profit margins over price reductions.
To sustain the Naira’s strength, he advised the CBN to continue promoting macroeconomic stability, attracting foreign investment, and addressing structural issues like corruption, insecurity, and inadequate infrastructure.
“While the recent Naira appreciation is encouraging, it may be temporary. Strategic and consistent interventions by the CBN will be crucial to sustaining this progress,” Oyedokun concluded.
Outlook
The economists agree that the Naira’s appreciation offers an opportunity to alleviate inflationary pressures, particularly in import-dependent sectors. However, sustained gains will require consistent policy measures and vigilance from the CBN to ensure long-term economic stability.
Business
NAFDAC’s Ban on sachets alcohol: the economy repercussions, by MAN
The Association emphasised that the ban would likely lead to the “Loss of over N1.9 trillion in investments, primarily from indigenous Nigerian companies.
The Manufacturers Association of Nigeria (MAN) has said that the government’s move to ban the production and sale of alcoholic beverages packaged in sachets and small PET bottles, effective December 31, 2025, will have severe repercussions on the economy.
” This announcement by the NAFDAC, in our view, is counterproductive and threatens to disrupt the economy significantly at a time when it is beginning to stabilise,” said the Association through its Director-General, Ajayi-Kadir.
The Association emphasised that the ban would likely lead to the “Loss of over N1.9 trillion in investments, primarily from indigenous Nigerian companies.
• Mass retrenchment of over 500,000 direct employees and approximately 5 million indirect employees through contracts, marketing, and logistics.”
Ajayi-Kadir said that the earlier directive from the Ministry of Health for a one-year extension, which included the consideration and validation of the draft National Alcohol Policy by stakeholders, should have been taken into account before any significant announcement from another government body.
“We believe that a consultation with whether through a public hearing or focused meetings with relevant parties in the alcohol beverage industry, should have been conducted by the appropriate Senate Committee before an outright ban was imposed.
This approach was successfully followed by the House of Representatives in the recent past,” he stated.
Ajayi-Kadir highlighted that issues related to the ban on alcohol in sachets and small PET bottles were addressed by a broad committee that included all stakeholders, along with NAFDAC representatives, who validated the National Alcohol Policy in October 2025. The committee made the following key recommendations:
• Develop multi-sectoral action plans.- Strengthen enforcement by law enforcement agencies
• Establish licensed liquor stores/outlets in Local Government Areas nationwide.
• Increase monitoring and compliance checks by NAFDAC, FCCPC, and others to ensure product quality and safety.
• Regulatory bodies should focus more on regulation, monitoring, and educational campaigns to inform stakeholders and the public about the dangers of underage alcohol consumption and its sale in motor parks.
• Conduct educational campaigns in secondary schools across the country to raise awareness among students about the dangers and issues related to alcohol abuse.
Furthermore, we would like to note that the unfounded and untested claim of abuse by minors has been challenged by several independent studies conducted by the government.
The industry has proactively launched campaigns promoting responsible alcohol consumption to discourage underage abuse, resulting in expenditures exceeding one billion Naira on media outreach across the nation, which has effectively just underage drinking.
Ajayi-Kadir also stressed that the Senate’s directive for an outright ban is unjust and does not reflect the industry’s true conditions, as it seems the upper chamber has only considered NAFDAC’s perspective.
NAFDAC was part of the validation organised by the Ministry of Health, and it should have presented its views to the Committee and the Ministry during that process, rather than circumventing these channels and approaching the National Assembly without consulting other stakeholders.
Business
Following Lagos, FG moves to ban single-use plastics
In his inaugural address, the SGF, George Akume, stated that the initiative aligned with Nigeria’s commitment to global environmental standards.
The Federal Government has commenced the process to ban single-use plastics, inaugurating a committee to steer the policy.
Lagos government began fully enforcement ban on single-use plastics (SUPs), including styrofoam packs, plastic straws, disposable cups, plastic cutlery, and nylons less than 40 microns thick, on July 1, 2025.
The Office of the Secretary to the Government of the Federation (SGF) , yesterday , set up an Inter-Ministerial Committee on the Ban of Single-Use Plastics (SUPs).
Earlier, the Federal Executive Council (FEC) during its meeting on June 25, 2024, approved the ban , specifically targeting Polyethene Terephthalate (PET) bottles, styrofoam food packs, plastic shopping bags, sachet water packaging, and plastic straws.
In his inaugural address, the SGF, George Akume, stated that the initiative aligned with Nigeria’s commitment to global environmental standards.
He said: “The FEC decision was in line with the Federal Government’s efforts to tackle various health and environmental challenges, especially those caused by single-use plastic products and therefore, approved the ban in the country of polyethene terephthalate (PET) bottles, styrofoam, plastic bags, sachet water and straw, which has become an environmental sanitation challenge.”
Business
UBA commits $102m direct investments in Chad’s securities
Themed “Financing African Competitiveness – Building Bridges, Powering Progress,” the forum highlighted investment opportunities under Chad’s $30 billion Tchad Connexion 2030 development blueprint.
•Oliver Alawuba, GMD UBA
United Bank for Africa (UBA) Plc has announced a $102 million direct investment in the State of Chad’s securities in an efforts to strengthen economic growth and financial inclusion across Africa.
The announcement was made by UBA Group Managing Director/Chief Executive Officer, Oliver Alawuba, during his keynote address at the UAE–Chad Trade and Investment Forum held on Monday, November 10, 2025, in Abu Dhabi, United Arab Emirates.
Themed “Financing African Competitiveness – Building Bridges, Powering Progress,” the forum highlighted investment opportunities under Chad’s $30 billion Tchad Connexion 2030 development blueprint.
According to Alawuba, the $102 million investment underscored UBA’s confidence in Chad’s economic potential and demonstrates its long-term commitment to financing sustainable development on the continent.
“At UBA, our commitment is two-fold: we are both architects of national infrastructure and champions of grassroots financial inclusion,” he said. “Here in Chad, this is not a promise; it is a proven track record.”
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