Elumelu highlights naira stability as key to economic growth
Abdullateef Fowewe
The prominent Nigerian investor and United Bank for Africa chairman, Tony Elumelu, has emphasised the critical importance of currency stability for economic development while speaking in Qatar with Bloomberg on Tuesday.
Video link: https://x.com/DailyEconews/status/1924884914756841787?t=_msdJZMSc6_E7huSvcPBKQ&s=19
Elumelu noted that currency volatility is a significant challenge for both Africa and Asia, regions often referred to as the Global South.
He stressed that fixing this volatility is essential for developing economies.
Discussing Nigeria specifically, Elumelu highlighted the importance of predictability in business environments.
“What’s important to people, to a large extent, is predictability. Businesses, stability. Let me know, even if the rate is whatever the rate is, but let there be predictability,” he said.
He welcomed the recent encouraging stability in Naira, which allows investors and businesses to plan and build scenarios with more confidence.
Elumelu also pointed out that while currency volatility can create gains, it also brings losses.
The key, he said, is to turn challenges into opportunities by strengthening financial positions to withstand inevitable fluctuations.
“Currency is a challenge, but almost a concern for planning in Africa as it is in Asia. And ability to predict is very critical, and that is what I see in Naira today,” he added.
He further remarked on the positive reception of the Naira’s stability among international investors, noting, “I have friends who live in other OECD countries who want to do transactions with Africa and Nigeria in particular, and they are happy that the stability and predictability of the currency—and want to see stable and if anything, go down progressively”.
