Nigeria Naira Set to Weaken to N1,993/$1 by 2028, Report Warns

The Naira is projected to weaken to N1,993/$1 by 2028, affecting Nigeria’s medical device imports. BMI Research reports that the continued depreciation will increase costs, strain healthcare access, and challenge the medical sector. Despite this, local manufacturers could benefit from enhanced competitiveness in the domestic market.

A recent report by BMI Research, part of Fitch Solutions, has projected that Nigeria’s Naira will weaken to N1,993 per US dollar by 2028. This depreciation is expected to have significant consequences, particularly in the healthcare sector, where the country relies heavily on imports for medical devices.

The report, titled “Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth,” highlights the potential for increased import costs for critical medical supplies. With Nigeria importing over 95% of its medical devices, the weakening of the Naira is expected to continue raising the prices of these goods, reducing purchasing power, and straining both the public and private healthcare sectors.

Although the Nigerian economy may experience some recovery in the coming years, the medical devices market is anticipated to face operational challenges. According to the analysis, as the Naira weakens, the cost of importing vital medical equipment such as diagnostics, orthopedics, and dental devices will rise, complicating access to these products for both healthcare providers and patients.

While the Naira has already depreciated sharply from about NGN600/USD to NGN1700/USD in the past year, BMI Research’s forecast suggests only a modest further decline over the next few years, with the exchange rate expected to stabilize at N1,993/$1 by 2028.

However, the report also noted that the devaluation could provide a boost to locally produced medical devices, enhancing their competitiveness in the domestic market and possibly encouraging growth in Nigeria's medical manufacturing sector.

Despite these opportunities, the continuing structural challenges within Nigeria's healthcare system, combined with the unstable currency, are expected to limit the sector’s growth and its ability to address the medical needs of the population effectively.