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Exports

Strengthening the Naira: Recommendations for Non-Oil Exports and Diaspora Investments

Strategic Insights

— 1 min read

The Central Bank of Nigeria (CBN) has been urged to implement policies that promote non-oil exports and attract diaspora investments to strengthen the Naira. This was part of the recommendations presented in the State of Enterprise 2025 Report released by EnterpriseNGR. The report highlighted key performance indicators across nine sectors, including banking, insurance, and fintech, and emphasized the need to reduce the country's reliance on oil exports. According to the report, the CBN contributed 5.8% to the country's GDP, with a growth rate of 30.9% year-on-year to ?4.58 trillion in 2024.

Key Takeaways:

  • The CBN's financial contribution to the country's GDP is significant, accounting for 5.8% with a growth rate of 30.9% year-on-year to ?4.58 trillion in 2024.
  • The report recommends implementing policies that promote non-oil exports, such as expanding targeted funds for low-interest loans to non-oil exporters.
  • The CBN should prioritize access to FX for exporters, enhance transparency in FX markets, and diversify inflow sources through diaspora bonds and export credit programs.
  • The report emphasizes the importance of diaspora investments in strengthening the Naira and reducing the country's reliance on oil exports.
  • The four tax reform bills assented to by President Bola Tinubu are seen as pathways to ease the means of business, with the government being proactive in simplifying the current tax regime and expanding the tax net.
  • The report highlights the need for a more inclusive, resilient, and sustainable financial future for Nigeria, with a focus on community values and cultural heritage influencing financial behaviors and investment practices.

Statistics:

  • The CBN contributed 5.8% to the country's GDP, with a growth rate of 30.9% year-on-year to ?4.58 trillion in 2024.
  • The four tax reform bills are aimed at simplifying the current tax regime and expanding the tax net.

Sources:

  • State of Enterprise 2025 Report, EnterpriseNGR
  • Tayo Muritala, Head of Research, EnterpriseNGR
  • Obi Ibekwe, Chief Executive Officer, EnterpriseNGR
  • Lami Adekola, Director, Policy and Public Affairs, EnterpriseNGR

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