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How Can We Save The Naira From Hitting 1,000 Per Dollar?

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4 years ago

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By Mayowa Tijani

In the past few weeks, I have written extensively about the naira and Nigeria’s foreign exchange regime. As a result, I have got quite a lot of feedback from virtually all strata of society.

Through it all, one thing has remained constant: How can we save the naira from hitting 1,000 per dollar?

As of September 27, 2021, the naira had touched another low of 580 per dollar at the parallel market. That is a fine of N420 from N1,000. But in these conversations on and off social media, Nigerians are quick to say, “the naira will soon hit 1,000 per dollar”. Sadly, history teaches these conversations may be exaggerated, but they are not totally out of line.

In an interview with Punch, Taiwo Oyedele, Fiscal Policy Partner at PwC, was asked if Nigeria should redenominate the naira by removing a few zeros to make the naira seem strong. He said no, that the Ghana plan doesn’t take the problem away. He argued that even if the naira exchanged at 1,000 per dollar, that may not be as big a problem as we think. He said the stability of the naira is all that matters, and for that to happen, the currency has to be supported by fundamentals.

His example was apt. He said the British pound is worth more than the US dollar, but this does not mean the British economy is stronger or bigger than the American economy. Might I add that the Nigeria naira is 411 to the US dollar (at the banks), while the South Korean won is 1,177 to the dollar. That does not make the Nigerian economy stronger than the South Korean economy. In fact, its GDP is three times that of Nigeria.

However, for the peace of Nigeria and all those who love her, it would be good not to go beyond N500 per dollar. But how do we do that?

CAN DANGOTE SAVE THE NAIRA?

One of the things we established from my most recent article on the subject is that we have a demand and supply problem. There is more need for dollars than the actual amount of dollars Nigeria has. Simple economics teaches that when demand is higher than supply, price tends to go up. So our solution lies in simply reducing demand or increasing supply.

Let’s assume we can’t increase supply just yet. Can we reduce demand?

The biggest demand for forex in Nigeria is from petroleum products. As far back as 2016, Nigeria spent about $18 million on fuel importation per day. That translates to almost $6.6 billion per year. This correlates with CBN figures which showed that $36.3 billion was spent importing fuel in five years.

If we suddenly do not have to import fuel, that saves us huge dollar reserves that can help stabilise the naira. If Dangote refinery comes online, we can save that cost. However, I understand that Dangote Refinery’s presence in a free trade zone may mean it would also demand to be paid in dollars for refined crude. But the CBN and Dangote can definitely settle that amicably. But how soon is Dangote refinery coming?

FOREIGN INVESTMENTS TO THE RESCUE

After my article asking if CBN can close the forex gap, a respected friend and colleague reached out to make some observations. His central point was that the 2017 miracle that moved the naira from 520 per dollar to 360 was not just because CBN tweaked its FX policy, but because of an increase in FX inflow. He noted that the problem should be fixed from the supply side.

“A quick finding revealed that external reserves surged by about $5bn in the first five months of the year [2017] from $25.8bn in December 2016 to $30.3bn in May 2017. Interestingly, that was not driven by crude oil as many would have expected. The prices of the commodity hovered around $35 per barrel,” he said.
He’s right. Adding firepower to Godwin Emefiele’s currency gun at CBN can sure help the naira. We desperately need foreign investments — especially non-oil investments. The only time in recent history that the naira was stronger at the parallel market than the banks was in April 2015, and it was a result of heavy investment inflow into Nigeria.

According to data from the National Bureau of Statistics (NBS), foreign investment in Nigeria has been epileptic in the last six years. If we must save the naira, we must fix the supply side driven by investments.

TRUST IN CBN AND THE SYSTEM

Sometimes, getting investors to come in is not the actual problem. Getting them to stay is the big elephant. One of the challenges with the FX system in 2016 was investors’ inability to repatriate their investment. To get dollars to take out was extremely difficult until the CBN introduced the I&E window, which helped tremendously.

Every investor I have met has three major concerns: rule of law, policy stability, and ability to repatriate profit.

Rule of law is beyond CBN, but a lot of the rest rests on the apex bank. Policy stability is important for investors to stay. Many don’t stay because the policies — monetary and fiscal — change. Consistency in policy would do good to the inflow and stability of forex into Nigeria, thus saving the naira.

PROFITING FROM ‘JAPA’

Hear me out. This weekend on social media, it felt like half of Nigeria was leaving the country to the UK, US, Canada, and the rest of Europe. And that should be a good thing, but it’s not entirely so. The Nigerian government in words and action has attempted to criminalise talent export. Annually, Nigeria loses thousands of doctors, software developers, academics, nurses, and maybe truck drivers soon. But rather than think of ways to make some structured forex from it, we fight it.

As Ibukun Awosika noted in 2019, Nigeria can deliberately train experts for export. We lose assets anyway, but what if the nation didn’t take them as enemies of Nigeria, but work with them as allies? Forex win-win.

A suite of demand and supply policies in the short, medium, and long term can definitely save the naira from the scary 1000/$1.

You can reach ‘Mayowa on Twitter @OluwamayowaTJ

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Union Bank’s Union Cares Initiative Celebrates Academic Excellence at Pacelli School for the Visually Impaired Graduation

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6 months ago

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July 29, 2025

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Union Bank of Nigeria proudly participated in the graduation ceremony of the Pacelli School for the Visually and Partially Sighted on 23 July 2025, honouring the resilience and academic achievements of visually impaired students.

The event, held on the school premises, highlighted the importance of inclusivity and determination in education.

As a 108-year-old institution committed to social responsibility, Union Bank’s involvement reflects its enduring support for Persons With Disabilities (PWD) and its dedication to fostering equitable access to education.

The Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, expressed her admiration for the graduating students:

“Union Bank proudly stands as a champion of inclusiveness and equitable representation. Through our UnionCares corporate social responsibility initiative, we are committed to supporting vulnerable and underrepresented communities.

We celebrate the incredible achievements of these students and reaffirm our dedication to empowering them to reach their full potential.”

UnionCares is Union Bank’s CSR Arm focused on creating sustainable social impact in key areas, including:

• Support for Vulnerable Groups: Empowering persons with disabilities and other marginalised communities through inclusive initiatives.
• Education and Skill Development: Facilitating access to education and practical skills that promote self-reliance and opportunity.
• Community Well-Being: Enhancing the overall quality of life of communities through health, education, and social welfare projects.

Union Bank remains honoured to collaborate with institutions dedicated to uplifting less-recognised members of society. The Bank remains dedicated to championing initiatives that inspire positive change, and foster a more inclusive, enlightened community across Nigeria.

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Fidelity Bank ED, Kevin Ugwuoke Takes Over As President Of Risk Managers Association

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7 months ago

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June 15, 2025

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Kevin Ugwuoke, Executive Director and Chief Risk Officer of Fidelity Bank Plc, has formally assumed office as President of the Chartered Risk Management Institute of Nigeria (CRMI).

His leadership promises a reform-focused era anchored on policy advocacy, ethical standards, and digital innovation to deepen risk governance across sectors in the country.

Speaking during the presidential handover ceremony in Lagos over the weekend, Ugwuoke — who also doubles as acting President of the Federation of African Risk Management Associations (FARMA) — described his election as “a call to action.”

He pledged to reposition CRMI as a thought leader and institutional partner in shaping the future of risk management in Nigeria’s national development.

“Our mission is more than just certification; it’s about strengthening the culture of risk governance across sectors. We will collaborate with regulators, raise awareness, and provide practical tools to help organizations embed risk discipline at all levels.”

Ugwuoke outlined a five-pronged strategy to guide his administration: strengthening professional education and certification; deepening policy and regulatory engagement; accelerating digital transformation; integrating ESG and climate risk into corporate strategies; and mentoring the next generation of risk practitioners.

He explained that CRMI will align its initiatives with key policy institutions — including the Nigerian Economic Summit Group, the National Assembly, and sub-national governments — to help embed robust risk frameworks into economic development plans.

“We must integrate risk thinking into how we plan, govern, and invest. We will advocate for more inclusive regulations to empower small and medium enterprises, improve macroeconomic stability, and foster institutional resilience.”

Ugwuoke also announced plans to revise the Institute’s curriculum, introduce specialized certifications to reflect emerging risks, and implement a new National Risk Observatory to provide real-time risk data to both the public and private sectors.

“Digital innovation will be central to how CRMI operates going forward. We are automating our backend, delivering more virtual training, and employing technology to scale our impact across the country and beyond.”

In his remarks, the outgoing President of CRMI, Ezekiel Oseni, challenged the new leadership to consolidate on the achievements made under his tenure — from securing chartered status and strengthening partnerships to gaining greater international recognition — and take the Institute to the next level.

Also speaking on the occasion, Chukwuma Nweke, deputy managing director of United Bank for Africa (UBA), delivering a goodwill message on behalf of Group Managing Director, Oliver Alawuba, described Ugwuoke as a worthy successor. “As Professor Oseni hands over the baton to Kevin Ugwuoke — a well-respected leader in the risk management ecosystem — we are assured CRMI is poised for greater achievements under his watch.”

Nweke stressed that growing economic uncertainties — from inflation and exchange rate volatility to growing debt — underscore the need for a more strategic view of risk. “Risk must be recognized not as a compliance obligation or a cost center but as a key enabler of resiliency and growth. Institutions that embed risk into their strategies will absorb shocks more effectively, unlock value, and inspire investor confidence.”

As part of the day’s ceremonies, 11 distinguished practitioners were conferred with the Fellow of Chartered Risk Manager (FCRMI) award, while 21 new members were formally inducted as Chartered Risk Managers (CRM).

Furthermore, a new Governing Council was inaugurated to oversee the affairs of the Institute for the 2025–2027 term, marking a decisive step forward in institutional renewal and policy direction.

L-R: Registrar/Chief Executive, Chartered Risk Management Institute of Nigeria (CRMI), Victor Olannye; Divisional Head, Risk Management Securities and Exchange Commission (SEC), Grace Abioye; Immediate Past President, CRMI, Ezekiel Oseni; President, CRMI and Executive Director/Chief Risk Officer, Fidelity Bank Plc, Kevin Ugwuoke; Director, Enterprise Risk Management, Nigeria Deposit Insurance Corporation (NDIC), Amal Haruna; and Rep. Keynote speaker, Deputy Group Management Director, United Bank of Africa (UBA), Chukwuma Nweke; at the CRMI Conferment Handover/Sent-Forth ceremony, held in Lagos recently.

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ZENITH BANK ENHANCES STAFF PAY BY OVER 20% AND PROMOTES ABOVE 4,000

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12 months ago

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January 25, 2025

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One of Africa’s leading financial institutions, Zenith Bank has reaffirmed its dedication to employee welfare by announcing the promotion of over 4,000 staff members and implementing salary increases ranging from 20% to 30% across various employee grades.

This bold initiative, under the leadership of Managing Director/CEO Dame Adaora Umeoji, its aimed at boosting staff morale and productivity.

With over 8,000 employees, this significant investment in human capital reflects Zenith Bank’s belief that its workforce is its most valuable asset. The salary adjustments, effective January 1, 2025, aim to reward performance, alleviate financial pressures, and ensure enhanced customer service delivery. Promotions for top management are also expected as part of the bank’s ongoing commitment to excellence and growth.

Dr. Umeoji emphasized the importance of maintaining a motivated workforce, stating that the bank’s dedication to its employees will translate into superior service experiences for customers. She highlighted the organization’s commitment to setting industry benchmarks through innovative solutions and exceptional service delivery.

Zenith Bank’s continued leadership in the Nigerian financial sector is underscored by numerous awards, including Best Bank in Nigeria 2024 by Global Finance and recognition as the Biggest Bank in Nigeria by Tier-1 Capital in 2024 by The Banker. These accolades complement its reputation for innovation, sustainability, and corporate governance.

By prioritizing employee welfare during challenging times, Zenith Bank not only strengthens its internal operations but also sets a standard for other financial institutions in the region, reinforcing its position as a leader in Africa’s banking landscape.

As a major player in Nigeria’s financial landscape, under its managing director/chief executive officer, Adaora Umeoji, the bank has embraced a holistic approach to growth that integrates environmental, social and governance (ESG) principles with its core business objectives.

At the heart of Zenith Bank’s strategy is a focus on buoying economic inclusion, supporting small and medium-sized enterprises (SMEs) and driving technological innovation to enhance customer experiences. The bank’s proactive investments in renewable energy, sports, digital transformation and impactful community initiatives exemplify its dedication to creating long-term value for its stakeholders while addressing global sustainability challenges.

Zenith Bank’s continued success is driven by a combination of strong financial performance and an unwavering commitment to its stakeholders.

Zenith Bank’s growth trajectory is underpinned by a robust expansion strategy. With operations in several countries, including the UK, UAE, China, and most recently, France, the bank continues to expand its geographical footprint.

As usual, the bank’s efforts in 2024 did not unnoticed as the lender clinched several local and international awards in recognition of its outstanding performance.

In 2024, the bank won the Best Bank in Nigeria at the annual Global Finance award in Washington, DC, NY.

The bank also emerged the Biggest Bank in Nigeria by Tier-1 Capital, 2024 by The Banker; Best Commercial Bank, Nigeria 2024 – World Finance; Best Corporate Governance, Nigeria 2024 – World Finance; Most Sustainable Bank, Nigeria 2024 – International Banker; Bank of the Year, 2024 – Business Day; Retail Bank of the Year, 2024 – Business Day; Bank of the Year 2024- The Banker.

It also clinched the Most Responsible Organization in Africa 2024 – SERAS; Best in Gender Equality & Women Empowerment 2024 – SERAS and Best in Transparency & Reporting 2024 – SERAS

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