Naira Expected to Strengthen to ₦1,300-₦1,400 by Year-End, Says BUA Chairman

Abdul Samad Rabiu, President of BUA Group, has forecast a significant strengthening of the Nigerian naira, predicting it will reach an exchange rate of between ₦1,300 and ₦1,400 to the dollar by the end of the year.

Rabiu attributed this anticipated growth to President Bola Tinubu’s bold economic reforms.

According to Rabiu, the policy changes implemented by the Tinubu administration are already showing promising results for businesses and the currency.

He noted that businesses are no longer solely reliant on the Central Bank of Nigeria for foreign exchange, as many can now source FX independently through international banking channels and credit cards.

Rabiu praised the current foreign exchange regime, describing it as more transparent compared to previous practices that created artificial scarcity

“Their bold reforms and decisive policies are creating the foundation for a stronger economy, a more stable currency, and a better future for businesses and Nigerians alike,” he added.

On inflation and food costs, Rabiu observed a significant reduction in commodity prices compared to last year. He encouraged Nigerians to be patient, noting that the reforms are still taking effect.

“If you look at the prices of food items last year and what we have today, you’ll see that there is a significant reduction in all the commodities. So, I think we just need to be a bit more patient. Clearly, things are getting better, and we must continue to support the government,” Rabiu said.

President Tinubu’s administration unified and liberalized the foreign exchange market in 2023, allowing the naira to float and merging multiple official FX windows into a single rate. This move has eliminated the need for companies to lobby for FX, according to Rabiu, who criticized the previous system for creating distortions and limiting access for many businesses.