Naira could strengthen to ₦1,100/$1 in 2026, says Aliko Dangote
Story by Martha Gwary
The President and Chairman of the Dangote Group, Aliko Dangote, has projected a marked appreciation of the naira, stating that the currency could strengthen to ₦1,100 against the United States dollar this year.
Speaking on Tuesday at the launch of the Nigeria Industrial Policy in Abuja — an event attended by Vice-President Kashim Shettima and other dignitaries — Dangote said recent policy reforms by the Federal Government were beginning to yield tangible results for manufacturers.
According to Channels Television, Dangote noted that although the naira is currently trading at around ₦1,300 to the dollar, prevailing reforms suggest improved prospects for the domestic currency.
He commended the administration’s policy direction, stating that manufacturers were increasingly optimistic about the economic outlook. He expressed confidence that measures aimed at curbing excessive importation and promoting local production would ease pressure on foreign exchange demand.
Dangote observed that the naira, which traded at about ₦1,340 to the dollar at the time of his remarks, could appreciate to ₦1,100/$1 within the year if supportive policies are sustained.
READ ALSO: Nigeria’s Public Transport Gap: Daily struggles, fatigue, and dangerous journeys, by Martha Gwary
However, he acknowledged the complex policy trade-offs involved, noting that a stronger naira could reduce government revenue in naira terms while lowering the cost of imports in an economy still heavily reliant on foreign goods.
Describing the situation as a “catch-22”, he argued that Nigeria must transition from an import-dependent structure to a production-driven economy, stressing that the country should prioritise domestic manufacturing of goods currently sourced from abroad.
He further called for enhanced protection and incentives for local investors, particularly in the form of improved infrastructure and reliable electricity supply, which he identified as a persistent constraint on industrial growth.
“While the policy direction is commendable, it must be matched with comprehensive protection for industrialists to realise the nation’s objectives of industrialisation, employment generation and sustained economic expansion,” he said.
READ ALSO: Dangote cement, Aradel rally adds ₦1.4tn to NGX value
The comments come amid renewed strength in Nigeria’s capital markets. According to Bloomberg, Nigerian equities recorded the world’s second-highest dollar-denominated returns in 2026, rising by 31 per cent and recouping an estimated $21 billion in market value lost following the sharp devaluation of the naira in 2024.
Total market capitalisation on the Nigerian Exchange Limited has climbed to approximately $84 billion, representing an increase of about 58 per cent compared with levels recorded prior to the currency’s earlier depreciation.
Meanwhile, businessman Femi Otedola has previously forecast that the naira could trade below ₦1,000 to the dollar before the end of 2026, contingent upon the Dangote Petroleum Refinery attaining its full production capacity of 650,000 barrels per day.
Otedola described the refinery’s projected output — including up to 75 million litres of Premium Motor Spirit daily — as transformational for Nigeria and the wider African market, noting that increased domestic refining capacity would conserve foreign exchange and alter the country’s energy dynamics.
READ ALSO: Dangote Refinery alone cannot meet Nigeria’s fuel needs, marketers warn
He expressed optimism that sustained structural reforms and improved local production would support a meaningful strengthening of the naira before year-end.
The currency has shown signs of recovery in recent weeks, trading at approximately ₦1,354 to the dollar at the official foreign exchange window and between ₦1,430 and ₦1,440 on the parallel market — its firmest levels in more than two years, according to market sources.
Follow the Neptune Prime channel on WhatsApp:
Do you have breaking news, interview request, opinion, suggestion, or want your event covered? Email us at neptuneprime2233@gmail.com
