Business magnate Tony Elumelu has highlighted the recent stability of Nigeria’s naira as a positive development that is helping investors better plan their activities in Africa’s largest economy.
After enduring frequent volatility throughout 2023, the naira has steadied this month, trading within a narrow band between 1,588 and 1,611 per US dollar. This comes following several devaluations aimed at attracting foreign capital and easing persistent dollar shortages in the country.
“The naira is becoming quite stable,” said Elumelu, chairman of United Bank for Africa and a member of Nigeria’s Presidential Economic Coordination Council, speaking at the Qatar Economic Forum. “I’d like to see that continuing.”
Elumelu credited policies by the Central Bank of Nigeria for this improved stability. Measures such as clearing the backlog of dollar demand, issuing fixed-income securities with attractive yields to lure portfolio investments, and increasing dollar supply to the forex market following US trade tensions, have all contributed.
“Currency volatility is a challenge for Africa and Asia. In the global south, fixing the volatility of our currencies will be critical for ultimately developing our economies,” Elumelu said. He is also the largest shareholder in Transnational Corporation of Nigeria Plc.
The Qatar Economic Forum, where Elumelu spoke, is underwritten by the government of the State of Qatar in partnership with Bloomberg.
