Vice President Kashim Shettima says the Nigerian naira would have strengthened to about ₦1,000 per US dollar within weeks if the Central Bank of Nigeria (CBN) had not intervened in the foreign exchange (FX) market to ensure stability. He made this comment on Tuesday during the Progressive Governors’ Forum (PGF) Renewed Hope Ambassadors Strategic Summit in Abuja.
Shettima emphasised that the CBN’s actions on Monday were meant to dampen excessive volatility in currency trading, which, if left unchecked, could have destabilised prices and harmed market confidence.
“In fact, if not for the interventions by the Central Bank of Nigeria yesterday, the ₦1,000 to a dollar we are going to attain in weeks, not months… But for market stability, the CBN generously intervened,” he said.
He also criticized behaviours he said were detrimental to currency stability, such as hoarding foreign exchange.
“So, for some of my friends, especially one of our party leaders who take delight in stockpiling dollars, it is a wake-up call,” Shettima noted.
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He added that Nigeria’s economy is starting to show signs of recovery, pointing to investment interest and policy reforms that have improved confidence among investors.
Government and CBN say reforms are bearing fruit
Shettima’s remarks echoed closely with statements from President Bola Ahmed Tinubu, who also expressed confidence that the naira could strengthen toward ₦1,000/$ in the near term, citing recent CBN interventions and improved macroeconomic indicators.
The presidency highlighted that Nigeria’s external reserves have risen to over $50 billion, the highest in about 13 years, which provides a stronger cushion for supporting the currency and imports.
CBN Governor Olayemi Cardoso and the Monetary Policy Committee (MPC) have also taken measures that reflect early stabilization, including a cautious reduction of the benchmark Monetary Policy Rate (MPR) to 26.5% to support economic activity while safeguarding price and FX stability.
Market developments that relate to the Naira’s performance
✔ Exchange Rate Movements: The naira has recently traded around ₦1,350–₦1,400 per dollar on the official and parallel markets — a narrowing gap compared with past distortions, suggesting improved market discipline.
✔ FX Liquidity and Reforms: Analysts attribute the currency’s relative resilience partly to CBN dollar injections into the market, policies to widen liquidity, and reforms to improve transparency in FX pricing and matching systems.
✔ External Reserves: Nigeria’s gross external reserves have climbed significantly, now providing close to nine months’ worth of import cover, downplaying critics who once feared rapid reserve depletion.
✔ Inflation and Monetary Policy: Nigeria has seen inflation decline for several months, allowing policymakers to consider easing interest rates cautiously without triggering renewed inflation spikes.
What experts say
Economists and market watchers note the naira’s path is still influenced by both domestic and international forces:
- Oil prices and export earnings — stronger receipts help bolster foreign exchange earnings.
- Remittances and capital inflows — increased inflows support FX liquidity.
- Speculative demand — behaviours like hoarding can weaken the currency by reducing supply in the market.
Outlook
While government confidence remains high that structural reforms will continue to support the naira, analysts stress that sustained appreciation to ₦1,000/$ will depend on deeper reforms, rising export earnings, stronger non-oil sectors, and continued FX liquidity improvements — along with careful fiscal and monetary coordination.
