Money

No More N1,200/$: Expert Predicts Naira Performance, Exchange Rate Against US Dollar in 2024

Friday, January 19, 2024 at 9:02 AM by Dave Ibemere 2 min read

Johnson Chukwu has disclosed his expectations for the performance of the Naira in the foreign exchange markets in 2024
The renowned Nigerian business leader is not optimistic about the Naira's performance against the US dollar
His remark comes as the Naira fell to N902.08/$ at the official market and exchanged at over N1,300/$ in the unofficial markets on Thursday, January 18, 2024

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Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

Johnson Chukwu, founder and managing director of Cowry Asset Management Limited, revealed his expectations for Nigeria's exchange rate market.

Speaking at the investment house's 2023 Quarter 4 & full Year review of the Nigerian economy and outlook for 2024, Chukwu said he expects the Naira to depreciate further in the forex markets in 2024.

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Naira to dollar exchange rate — Naira to fall to N1,500 against US dollar Photo credit: crowyasset
Source: Getty Images

He projected that in a worst-case scenario, the Nigerian currency may depreciate to N1,500 against the dollar during the year.

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His words:

"The worst-case scenario is that the naira could worsen to N1,500 against the dollar while the best-case scenario, the exchange rate would be at N800 per dollar, a moderate-case scenario pegs the rate at 1,000/$."

At the event held on Wednesday, January 19, 2023, Chukwu called on the federal government to strengthen crude oil production to boost dollar earnings.

More about naira to dollar exchange:

Nigerian economy outlook

During his presentation, the Crowy Assets CEO expressed doubts about President Bola Tinubu's $1 trillion economy projection.

However, he expects the construction sector to drive the Nigerian economy in 2024 due to an increased budget allocation to capital projects by the three tiers of government.

“We think the sector that will drive growth is the construction sector in 2024"

On the exit of multinationals, Chukwu attributed the development to the business environment in Nigeria.

He noted:

“In 2023, major multinational firms publicly declared their intention to cease operations due to the challenging business environment.

"This environment, marked by incoherent foreign exchange policies hindering profit and dividend repatriation, has left many companies incapacitated."

Economist sets new exchange rate

Earlier, Legit.ng reported that the Economist Intelligence Unit (EIU), a research and analysis firm, predicted that the Naira would close in 2023 with an exchange rate of N848/$ in the official market.