Business
Dangote Predicts Naira Could Strengthen to N1,100
Aliko Dangote predicts the naira could reach N1,100 to the dollar in 2026, citing government reforms and industrial policy support
Aliko Dangote, Chairman of the Dangote Group, has projected a substantial strengthening of the naira, saying the currency could reach N1,100 to a dollar this year.
Also read: Aliko Dangote Reaffirms Customer Focus at Nascon 2025 Dinner
Dangote made the statement on Tuesday during the launch of the Nigeria Industrial Policy in Abuja, in the presence of Vice President Kashim Shettima and other dignitaries.
Speaking on the currency’s trajectory, Dangote highlighted the impact of government reforms, noting that manufacturers are already beginning to see positive results.
“Today, the dollar is N1,340. Mr Vice-President, I can assure you that, with what I know, by blocking all this importation, the currency this year will be as low as N1,100 if we are lucky,” he said.
He also cautioned about potential trade-offs, noting that a stronger naira could reduce import costs, benefiting consumers, but could limit government revenue derived from naira-denominated collections.
Dangote emphasised that Nigeria should focus on producing its own goods rather than relying heavily on imports.
The business magnate called for stronger protection for local investors, underlining the need for incentives and improved infrastructure.
“While the policy is in order, it must be backed with full protection for industrialists to drive the nation’s goal for industrialisation, job creation, and economic growth,” Dangote added.
The remarks come amid a strong performance in Nigerian equities.
Bloomberg reported that Nigerian stocks delivered the world’s second-best dollar returns in 2026, rising 31 per cent and regaining $21 billion in market value lost after the naira’s sharp devaluation in 2024.
Total market capitalisation on the Lagos Exchange now stands at approximately $84 billion, a 58 per cent increase from pre-devaluation levels.
Earlier, Femi Otedola also expressed optimism, forecasting that the naira could trade below N1,000 to the dollar by year-end, driven by the Dangote Petroleum Refinery reaching full production capacity of 650,000 barrels per day.
The refinery’s output, capable of supplying up to 75 million litres of Premium Motor Spirit daily, is expected to reduce import dependency and conserve foreign exchange.
Also read: Dangote Group Signs $400m Deal to Expand Refinery Capacity
The naira has already shown signs of strengthening, trading around N1,354 to the dollar in the official foreign exchange market and about N1,430-N1,440 on the parallel market, marking its strongest levels in over two years.
TotalEnergies and Nigerian independent energy company AMNI International have taken the Final Investment Decision on the $800 million Ima Gas Project, more than five decades after the gas field was discovered.
The Ima Gas Project, located in shallow waters across Oil Mining Leases 112 and 117 near Bonny Island, Rivers State, is expected to begin production in 2028 and reach a plateau of 350 million cubic feet of gas per day.
The development is expected to play a major role in supplying feed gas to Nigeria LNG, with the Ima field projected to provide about one-third of the additional gas required for the ongoing Train 7 expansion.
Train 7 is expected to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum, strengthening Nigeria’s capacity to process and export liquefied natural gas.
The Ima field was discovered in 1973 but remained undeveloped for more than 50 years. The Final Investment Decision provides the commercial and financial basis for finally developing the long-dormant resource.
Under the development plan, TotalEnergies will operate the project with a 40 per cent interest, while AMNI will hold the remaining 60 per cent.
The field will be developed using a single offshore platform connected to Nigeria LNG’s facility on Bonny Island through a 22-kilometre pipeline.
TotalEnergies said its investment in the project is more than $600 million, while the Federal Government described the overall Final Investment Decision as an $800 million investment.
At the FID signing ceremony in Abuja, TotalEnergies Exploration and Production Nigeria Managing Director, Mathieu Bouyer, described the decision as the culmination of a development process that had stretched across several decades.
He said the project reflected increased confidence in Nigeria’s investment environment and highlighted reforms targeting the non-associated gas sector as part of the factors that helped make the development commercially viable.
President Bola Tinubu welcomed the investment, saying the project demonstrated the potential of reforms introduced to reduce the cost and time required to develop oil and gas projects.
The President said the government had introduced incentives aimed specifically at unlocking onshore and shallow-water gas projects that had remained undeveloped for years.
He said the Ima development would create opportunities for Nigerian businesses, engineers, technicians and contractors, while generating jobs, economic activity in host communities and additional export earnings.
The project is also expected to have a strong Nigerian content component. TotalEnergies said all key contractors for the development would be Nigerian companies, while about 60 per cent of the workforce during the development phase is expected to come from host communities.
The development will incorporate measures aimed at reducing emissions. TotalEnergies said the platform would receive electricity from shore, operate without routine flaring and use permanent methane detection and monitoring systems.
The Federal Government said the project is part of efforts to turn Nigeria’s large natural gas reserves into productive assets capable of supporting industrialisation, energy supply, jobs and export earnings.
Special Adviser to the President on Energy, Olu Verheijen, said the Ima development illustrated the importance of creating commercial and investment conditions that allow previously stranded resources to be developed.
The government also noted that Nigerian financial institutions arranged 77 per cent of the project’s financing, further highlighting the participation of domestic financial institutions in the development.
For Nigeria LNG, the project comes as the company continues work on the Train 7 expansion, which is designed to increase the Bonny Island plant’s liquefaction capacity and strengthen the country’s position in the global LNG market.
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