Business

Economists Predict Positive Impact of Naira Appreciation on Inflation and Import Prices

Published

1 year ago

December 10, 2024

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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

Invest in Lagos 3.0 Summit Attracts more than 600 delegates

Ohibaba.com reports that the summit, themed “Lagos: The Business Gateway to Africa,” featured presentations from representatives of the Presidency and the governors of Lagos, Imo, Abia, Plateau, Taraba and Nasarawa states.

Published

27 minutes ago

June 10, 2026

OCHEFA

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• Representatives of government and private sector delegates at the summit

Invest in Lagos 3.0 Summit attracted more than 600 delegates—including global institutions, sovereign wealth funds, development finance institutions and trade networks.

The host governor, Babajide Sanwo-Olu, called for increased private sector investment in rail transport, energy, agriculture, agro-processing and water infrastructure.

He said that addressing transportation challenges would unlock Lagos’ economic potential, reduce travel time, boost productivity and improve returns on investment.

Minister of Finance, Dr. Taiwo Oyedele, assured investors of the Federal Government’s commitment to creating a conducive business environment through ongoing fiscal reforms. He said the new tax law has eliminated multiple taxation, improved compliance and provided relief for small and medium enterprises.

Oyedele added that stamp duty collection has been transferred to state governments and commended states that have adopted harmonised tax systems.

Business

UBA wins 2026 ‘Banker Technology’ award for AI innovation

UBA’s recognition centres on integrating Leo, its AI-powered chatbot, with the Pan-African Payment and Settlement System (PAPSS), enabling customers to send funds across borders in local currencies via a conversational interface.

Published

45 minutes ago

June 10, 2026

OCHEFA

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United Bank for Africa (UBA) Plc, has been named the winner of the African category at the 2026 Banker Technology Award

In its assessment of UBA’s winning entry, The Banker noted that “the bank has cemented its status as a leading digital operator by placing technology at the centre of its growth strategy across more than 20 countries, with this approach most visible in its work on cross-border transfers, spanning digital payments, AI-driven engagement, and e-business”

UBA’s Executive Director Designate, Digital Banking, Emmanuel Lamptey, received the award on behalf of the bank.

He emphasised that the bank’s aim to fully digitise banking across the entire continent“.

” Africa’s financial future will not be built on branches or borders. It will be built on intelligence, interoperability, and trust at scale,” Lamptey said.

Business

Tony Elumelu’s United Capital Secures approval to operate in Ethiopia

Elumeu lauded the transformational Prime Minister of Ethiopia, His Excellency @AbiyAhmedAli , for promoting economic reforms and regional cooperation, the Director General of Ethiopian Capital Market Authority @CMAEthiopia , Ms. Hana Tehelku, and the team at @UnitedCap on this landmark achievement.

Published

15 hours ago

June 9, 2026

OCHEFA

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United Capital Group has again secured regulatory approvals to commence operations in Ethiopia.

Its Chairman, Tony Elumelu, broke the news on Tuesday, via his official X.

” This development is particularly noteworthy because Ethiopia only recently opened its financial sector to foreign participation, making United Capital’s entry a historic step for both the company and the ongoing integration of African capital markets,” said Elumelu.

Last month, United Capital commenced operations in Rwanda, marking its formal entry into East Africa and reinforcing its ambition to build a leading continental financial services institution.

The Group’s newly established entities include United Capital Trustees Rwanda Limited, licensed to provide trusteeship services, and United Capital Financial Services Rwanda Limited, licensed to offer investment management services, including portfolio management, investment advisory, capital mobilisation, capital market advisory, and fund management solutions.

With this development, United Capital now operates in 11 countries, including Nigeria, with a strong presence in key African markets, a recent expansion into the eight countries within the West African Economic and Monetary Union (WAEMU) region, alongside a growing footprint in East Africa.

According to Elumelu, African institutions are increasingly leading, competing, and succeeding across the continent.

For decades, Africa witnessed foreign capital flowing in while profits largely flowed out.

That narrative is beginning to change.

This is Africapitalism in action — a vision that recognizes the importance of both indigenous and international capital working together to finance Africa’s development and unlock shared prosperity.