The Naira Slips, Akinwumi Adesina Urges Power Fix for Growth
The Week's Naira-Dollar Exchange Rate Dip
Nigerian Naira Deteriorates in Official Exchange Market Today
The Nigerian currency, the Naira, recorded a modest decline in the official market on Tuesday, trading at ₦1,602.18 per dollar - a loss of ₦5.49 compared to the ₦1,596.69 per dollar rate on the previous day, April 30. This represent a 0.34% decrease [1].
The Naira had shown relative stability over the three trading days prior - recording rates of ₦1,599.95, ₦1,599.71, and ₦1,596.69 respectively. However, the local currency ended the week on a downward trend, starting with a slight 0.02% loss at the beginning of the trading week.
Adesina's Plea for Power Prioritization
In a keynote address at Monday's 20th Anniversary Dinner of Chapel Hill Denham in Lagos, the President of the African Development Bank (AfDB), Akinwumi Adesina, urged the federal government to prioritize fixing the country's power challenges for development.
He emphasized that without reliable power, Nigeria's economy would not achieve its expected growth. Access to power, he said, is essential for productivity, competitiveness, and prosperity. He also stressed that Nigeria's economy cannot thrive in the global digital economy through diesel generators and called on private sector players to invest in Nigeria’s energy sector to address the nation's perennial power challenge.
The Power-Growth Nexus
Addressing power challenges could potentially lead to higher economic growth rates by increasing productivity and supporting industrial activities [2][3]. A more stable and growing economy could have a positive impact on the Naira, potentially strengthening its position against other currencies by boosting investor confidence and decreasing reliance on imports. Improved power infrastructure is also expected to attract more investments, further supporting the currency [3].
Despite Adesina's advice, the current economic predictions for Nigeria, as outlined by the IMF, focus on broader global economic trends and domestic factors like oil prices. Achieving Adesina's vision would require implementing significant reforms and investments in power infrastructure, which could potentially alter the current trajectory of Nigeria's economic performance.
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Overall:- Current Predictions for Nigeria's Economy- The AfDB President's Advice for Economic Growth- Potential Impact of Addressing Power Challenges
*** Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today 3rd May 2025***
Enrichment Data:
- Economic Growth: The IMF has downgraded Nigeria's economic growth forecast for 2025 to 3.0%, from a previous estimate of 3.2%[1][2][4]. This downgrade is attributed to declining oil prices and global uncertainties. The growth rate is expected to slow further to 2.7% in 2026[1][3][4].
- Currency and External Factors: Nigeria's current account surplus is projected to decline from 9.1% of GDP in 2024 to 6.9% in 2025 and 5.2% in 2026[3][4]. Lower oil prices are a significant factor affecting Nigeria's fiscal and external balances [3][4].
[1] - https://www.imf.org/en/Publications/WEO/Issues/2023/02/weo-nigeria[2] - https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=NG[3] - https://www.reuters.com/business/africa/nigeria-inflation-climbs-15-9- april-2023-1028088854/[4] - https://www.nairametrics.com/2023/05/03/naira-deprecates-against-dollar-trades-at-1-602-18-per-us-dollar/
- Despite the IMF downgrading Nigeria's economic growth forecast for 2025 to 3.0%, Akinwumi Adesina, the President of the African Development Bank (AfDB), urged the federal government to prioritize fixing the country's power challenges for development.
- Adesina emphasized that without reliable power, Nigeria's economy would not achieve its expected growth, and access to power is essential for productivity, competitiveness, and prosperity.
- Addressing power challenges could potentially lead to higher economic growth rates by increasing productivity and supporting industrial activities, which could have a positive impact on the Naira, potentially strengthening its position against other currencies.
- He also stressed that Nigeria's economy cannot thrive in the global digital economy through diesel generators and called on private sector players to invest in Nigeria’s energy sector to address the nation's perennial power challenge.
- Improved power infrastructure is expected to attract more investments, further supporting the currency and potentially altering the current trajectory of Nigeria's economic performance.
- On Wednesday, the black market dollar (USD) to Naira (NGN) exchange rate was ₦1,602.18, showing a decrease from the previous day's rate.
- The current economic predictions for Nigeria focus on broader global economic trends and domestic factors like oil prices, but achieving Adesina's vision would require implementing significant reforms and investments in power infrastructure.
- Despite the economic challenges, the Nigerian currency, the Naira, and the country's economy have shown relative stability in some aspects, but they would benefit significantly from addressing the power challenges facing the nation.
