After the Central Bank of Nigeria floated the naira, the value of Nigeria’s exports might increase to at least N41.99 trillion annually. To close the gap between the official and black market values of the naira, the central bank had last Wednesday instructed deposit money banks to eliminate the rate cap on the naira at the official Investors and Exporters’ Window of the foreign currency market.
Following the change, the naira dropped from 471/$1 to 664.04/$1 before closing a week later at N663.04/$1. Nigeria’s overall exports in 2022 were estimated by the International Trade Center to be $63.34 billion. Additionally, Nigeria’s export value is anticipated to rise as a result of the government’s aim to expand oil production, which is a significant part of the nation’s export.
This was true notwithstanding a decline in oil production brought on by theft of crude oil and pipeline damage. According to a recent article by The PUNCH, Nigeria’s oil production fell by 28 million barrels between January and July 2022.
“The most recent CBN action is anticipated to boost the government’s revenue, which has been steadily declining.