Elumelu in Qatar: Naira Stability Signals Investor Confidence in Nigeria

Nigerian business mogul Tony Elumelu has highlighted the recent stability of the naira as a turning point for investor confidence in Africa’s largest economy. Speaking at the Qatar Economic Forum, the chairman of United Bank for Africa and key member of Nigeria’s Presidential Economic Coordination Council said the naira’s performance in recent months marks a critical step toward economic recovery and sustainable investment.

“The naira is becoming quite stable,” Elumelu noted. “I’d like to see that continuing.”

After enduring significant volatility since 2023—fueled by multiple devaluations aimed at attracting foreign inflows—the naira has shown new signs of resilience. In May, the currency traded within a narrow band of 1,588 to 1,611 per U.S. dollar. This stability has provided much-needed clarity for investors, many of whom had been sidelined by uncertainty in Nigeria’s foreign exchange market.

The Central Bank of Nigeria (CBN) has implemented several strategic measures to steady the currency. These include clearing a backlog of unmet dollar demand, offering high-yield fixed-income securities to draw in portfolio investments, and increasing dollar supply in the foreign exchange market. These reforms have come in the wake of broader global economic shifts, including fallout from former U.S. President Donald Trump’s trade policies.

“Currency volatility is a challenge for Africa and Asia. In the global south, fixing the volatility of our currencies will be critical for ultimately developing our economies,” said Elumelu, who is also the largest shareholder of Transnational Corporation of Nigeria Plc.

With macroeconomic reforms gaining traction and investor sentiment gradually improving, Elumelu’s remarks suggest cautious optimism for Nigeria’s financial outlook. The Qatar Economic Forum, underwritten by the State of Qatar and powered by Bloomberg, provided a global stage for the discussion of such pivotal developments.

:Reported by Bloomberg