Naira Stability Boosts Nigeria’s Trade as Importers, Manufacturers Enjoy Predictable Pricing and Lower FX Losses
By Okafor Joseph | July 29, 2025 | SpringnewsNG Media Limited
Nigeria’s trade sector is witnessing a significant rebound as the naira’s stability brings relief to importers, manufacturers, and banks, creating a more predictable business environment across Africa’s largest economy.
For businesses like Williams Dabo Group, the steady naira has drastically reduced foreign exchange (FX)‑related risks and improved trade forecasts.
“The stability has helped us to make forecasts for the import of products and raw materials for our industry,” said Esther Williams, director and procurement officer at Williams Dabo Group.
“A predictable naira has meant lower trade costs for us, especially on Free on Board (FOB) shipments.”
Naira Stability Driving Economic Confidence
Since January 2025, the naira has traded in a narrow band, averaging N1,544.25/$1, with its strongest level at N1,477.72/$1 in late January. This currency stability, not seen since early 2023, has boosted investor confidence and increased trade volumes.
George Coleman, CEO of Coleman Wires and Cables and chairman of the Manufacturers Association of Nigeria (MAN), Ogun State chapter, said the stability has transformed decision‑making for manufacturers.
“The naira’s stability brings predictability and encourages investments. We’ve seen more factories and manufacturers joining the association this year,” Coleman said.
Trade and Banking Rebound
Data from Nigeria Customs Service shows that import declarations rose to 327,928 in Q1 2025, compared to 311,492 in Q1 2024.
A BusinessDay survey also revealed that FX‑related losses for businesses dropped sharply from ₦951.7 billion in Q1 2024 to ₦28.7 billion in Q1 2025, reflecting the positive impact of naira stability.
Banks have also regained confidence, as seen in the increase in letters of credit issued to importers. Tajudeen Ibrahim, an economist at Chapel Hill Denham Securities, explained that rising foreign portfolio investments and improved liquidity are supporting the naira.
Predictable Pricing Benefits Manufacturers
For manufacturers like Amayi Foods, where some packaging components are imported, the naira’s stability has reduced price volatility.
“Last year, packaging pricing was changing every two weeks. Now, we’ve been paying the same rate for a while,” said Kudzayi Hove, co‑founder of Amayi Foods.
Jonathan Nicol, former chairman of the Shippers’ Association of Lagos State, said the predictability in import costs has long been missing.
“You can now place orders and know your costs won’t suddenly change. That’s a big relief for importers,” Nicol said.
Challenges Remain
Despite the positive momentum, high port charges and operational inefficiencies continue to erode some of the gains from FX stability. Nicol urged the government to streamline customs processes and reduce the cost of doing business to fully unlock the benefits of the naira’s stabilization.
As 2025 progresses, Nigeria’s trade revival appears sustainable if current monetary and trade policies remain consistent and supportive of investment and manufacturing growth.
