Chairman of United Bank for Africa (UBA) and member of the Presidential Economic Coordination Council, Tony Elumelu, has commended Nigeria’s recent foreign exchange reforms, noting that the naira’s relative stability in recent months is restoring investor confidence and enabling better planning across the business landscape.
Speaking at the Qatar Economic Forum, Elumelu stated that the currency, which previously experienced prolonged volatility due to multiple devaluations and market distortions, has shown signs of consistency, trading within a narrow band of ₦1,588 to ₦1,611 per US dollar throughout May 2025.
“The naira is becoming quite stable,” Elumelu said. “I’d like to see that continuing. Stability brings confidence and predictability, which are crucial for economic growth and investment.”
The business leader attributed the improvement in exchange rate performance to key policy measures implemented by the Central Bank of Nigeria (CBN), including the clearance of the foreign exchange backlog, increased issuance of high-yield fixed income instruments to attract foreign portfolio inflows and more transparent dollar supply interventions in the FX market.
Market analysts have noted that the naira’s recent trajectory reflects reduced pressure on the foreign reserves and improved liquidity, particularly at the official window. These developments follow months of structural adjustments introduced to unify the exchange rate and restore credibility in the CBN’s monetary policy approach.
Elumelu, who is also the largest shareholder in Transnational Corporation of Nigeria Plc (Transcorp), stressed that addressing currency volatility is essential not just for Nigeria but for developing economies across the Global South.
“Currency volatility is a challenge for Africa and Asia. In the global south, fixing the volatility of our currencies will be very critical for ultimately developing our economies,” he stated.
He added that sustained currency reforms are necessary for long-term competitiveness, foreign direct investment inflows, and macroeconomic resilience.
Elumelu reiterated the importance of policy consistency and collaborative execution between the fiscal and monetary authorities to consolidate recent gains.
While the naira’s outlook remains sensitive to global monetary trends and capital flow dynamics, industry experts argue that sustained discipline in FX management and broader macroeconomic coordination will be essential to prevent a reversal of progress.
Elumelu’s remarks come as investors continue to assess Nigeria’s monetary direction amid expectations that the Central Bank will maintain its tightening stance and FX liquidity interventions in the second half of 2025.
The Nigerian government, through the Economic Coordination Council, is expected to unveil additional policy support aimed at deepening capital market activity, improving investor protections, and expanding the country’s productive base to support exchange rate sustainability.
