The continued rally of the Nigerian naira will be underpinned by a sustained current account surplus, stable or rising reserves, strong structural FX supply, including exports, remittances, and a tight, credible macro policy to curb speculative demand, according to Tilewa Adebajo, chief executive officer of Lagos-based consultancy CFG Advisory.
Adebajo, who spoke to this reporter, added that the government will need to ramp up domestic oil production to save the currency, which recorded its best year in 13 years, gaining 7.5 percent last year from global shocks.
“At today’s lower production levels, the naira remains highly exposed to oil prices; a meaningful, sustained drop in Brent would quickly pressure the FX regime,” Adebajo said.
