Top US Firm Predicts Naira to Dollar Exchange Rate by 2028, Gives Reasons

• US-based research firm BMI has predicted a new exchange rate for the naira against the dollar in the years ahead
• BMI said it expects the naira to further depreciate in the foreign exchange market to nearly N2,000 a dollar
• The Nigerian currency currently exchanges in the official and black markets above N1,681 against the US dollar

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

BMI, a subsidiary of Fitch Solutions, has predicted that the Nigerian naira will decline further to N1,993 per US dollar by 2028.

The research firm based its prediction on economic challenges, including Nigeria’s medical device industries, which rely on imports for over 95% of its needs.

The report, released on its website, highlighted that while Nigeria's economy is projected to rebound, structural weaknesses, including a persistent naira depreciation, will intensify import costs for essential healthcare supplies.

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Punch reports that BMI also noted that the weak currency would affect Nigeirians' purchasing power and complicate access to critical medical devices.

Part of the report reads:

"We expect that the naira will end 2028 at N1,993/$, down from N306/$ in 2018. As the naira weakens, the cost of importing medical devices will continually increase, impacting both the health system and patient purchasing power."

The report titled “Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth” also said that the pressure will affect public health financing and the high cost of imports of medical products, especially orthopaedics and dental products.

The report added:

"This would particularly affect high-cost demand for devices such as diagnostics, orthopaedics and dental products."

Good news ahead

Despite the gloom, BMI suggests that the challenges will help to increase efforts on locally manufactured medical devices.

It noted that a weaker naira could make Nigerian-made products more competitively priced internationally, encouraging export growth.

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CBN announces highest customs exchange rate to clear goods at ports as naira crashes

Meanwhile, the naira traded at N1,681.42 per dollar on Monday, November 11, 2024, a 15% decline from the previous trading day’s close.

Pastor Adeboye predicts naira will bounce back

Legit.ng earlier reported that Adeboye prophesied the possibility of the Nigerian currency bouncing back against the dollar with greater influence.

Adeboye revealed the prophecy at the RCCG's monthly Thanksgiving service on Sunday, with the theme 'Uncommon Miracles'.

According to the religious leader, there was a period when Nigeria's currency completely favoured the US dollar.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng