Nigeria Naira Devaluation Boosts Nigerian Exports to African Markets, Says Customs Official

The declining value of Nigeria's currency against the U.S. dollar and other major currencies has emerged as an economic silver lining, providing an unexpected tailwind for Nigerian exporters according to customs officials at a major international border crossing.

"As the value of the naira begins to decline, you find that Nigerian-made goods are considered cheap within the region," said Timi Bomodi, comptroller of the Seme border command for the Nigeria Customs Service (NCS). "This encourages people from neighboring countries to want to purchase goods from Nigeria."

Bomodi, speaking in an interview Sunday, explained that while the weaker naira has made imports to Nigeria more expensive, it is having the opposite impact on Nigerian exports to other African nations.

According to customs data, export volumes through the Seme-Krake border post to neighboring countries have risen sharply in recent months.

"While we complain that the exchange rate has a negative impact on imports, it has a positive impact on exports," Bomodi told NAN. "For the first time, you have a net export gain for Nigeria vis-a-vis her neighboring countries, because what makes Nigerians go to their neighbors is now making them come to Nigeria."

The comptroller pointed to basic economic principles of supply, demand and prices underlying the export swing.

As the naira has devalued, goods produced in Nigeria have become far more affordable to buyers in countries using harder currencies like the U.S. dollar.

"Yes, we couldn't buy goods because the dollar was high, but people saw a cheap naira as an opportunity to get goods from Nigeria," Bomodi said.

He stressed that the Seme-Krake border crossing in particular has seen an upswing, as it serves as the gateway for the Lagos-Abidjan corridor, considered the most economically vital trade route in West Africa.

International agencies like the European Union are investing heavily in infrastructure upgrades for this strategic transit corridor.
The naira has faced downward pressure following the Central Bank of Nigeria's June 14 announcement unifying all segments of the foreign exchange market into a single investors and exporters window. Since then, the naira has appreciated slightly on the parallel market to around 1,490 per U.S. dollar.

While warning that "in trade, you have to balance both ends," Bomodi portrayed the naira's current status as a net positive for Nigerian exports and domestic economic activity, even as importers face higher costs.
"A devalued naira is an advantage for exports," he said. "So it's not such a negative thing."

At the Seme border, customs officials are working to facilitate the legitimate flows of Nigerian-made goods outward, while enforcing the government's import prohibitions and policies, Bomodi added.

As Nigeria's economic powerhouses like Lagos and manufacturers look to leverage the price advantage abroad, the naira's declining value has served an unlikely role as an export growth engine – at least for now.