Expert Predicted Naira to Dollar 2024 Closing Rate Amid FX Crisis

In a recent statement by Adetilewa Adebajo, the Chief Executive Officer of Corporate Finance Group (CFG) Advisory, it is predicted that the Nigerian Naira will likely close the year at a rate between N1,500 and N1,800 against the US Dollar. Adebajo emphasizes the ongoing foreign exchange (FX) crisis, suggesting a forecast midpoint of N1650/$.

Adebajo urges Nigerians to brace themselves for an 18-month economic recovery period characterized by a high-interest rate regime and persistent FX scarcity at the Nigerian Autonomous Foreign Exchange Market (NFEM), with some relief from the parallel market. He stresses the importance of hedging to preserve value, recommending the movement of excess liquidity and profits into assets that retain value.

Expressing concern over Nigeria’s unsustainable debt levels, Adebajo notes that the $130 billion debt burden is being serviced by 95% of revenue, surpassing both recurrent and capital expenditure. He suggests that immediate discussions on restructuring both domestic and external debt should take place alongside ongoing economic reforms to avoid potential challenges similar to those faced by other countries.

READ ALSO: Naira Black Market Exchange Rate Hits 1240 Against the US Dollar on January 9, 2024

Regarding business projections, Adebajo provides a benchmark recommendation for businesses to retain value by year-end 2024, suggesting a rate between 1,500 and 1,800 Naira to the Dollar, depending on the sector of the economy. He questions the $10 billion deficit in the 2024 budget and raises concerns about Nigeria potentially heading towards default, akin to Ghana, Zambia, and Ethiopia.

Adebajo concludes by emphasizing that while the fundamentals of the economy remain sound, effective economic leadership is crucial for realizing its potential and fostering growth. Despite the challenges, he expresses optimism with the presence of a new and highly-rated economic management team.

Source: The Guardian – Expert Predicted Naira To Dollar 2024 Close Rate

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