Nigeria’s naira recently fell through a crucial threshold, dipping below ₦1,450 per U.S. dollar in the official market. At the same time, it traded around ₦1,487 per dollar on the black market. This decline comes even as some signs pointed to modest strengthening.
Against this backdrop, Aliko Dangote, Africa’s richest man and founder of the Dangote Group, called on dollar holders to sell their foreign currency immediately instead of hanging on to it. “Rather than holding on to dollars, sell them now,” he said. He made this appeal during a global press conference in Lagos, where he also announced expansion plans for his $20 billion refinery.
Dangote’s reasoning is anchored in confidence that his refinery’s growth, aligned with favorable government policies, will strengthen Nigeria’s trade balance and foreign reserves. As reliance on fuel imports decreases, he expects the naira to gain more stability.
Earlier this month, the naira was trading at around ₦1,475 per dollar. By late October, it had firmed slightly to ₦1,447. The Central Bank of Nigeria (CBN) also confirmed that the naira improved by ₦5 points in the official foreign exchange market.
The Dangote Refinery, which is currently producing diesel, gasoline, and jet fuel at a capacity of 650,000 barrels per day, started full operations in early 2025. Dangote plans to boost capacity further to 1.4 million barrels per day, potentially making it the world’s largest single-train refinery.
Meanwhile, global currency markets are also exerting influence. The U.S. Dollar Index (DXY), which tracks the strength of the dollar against a basket of foreign currencies, has been rebounding after a brief decline.Investors believe the Federal Reserve may cut interest rates soon, which could reduce pressure on emerging-market currencies like the naira.
In the short term, Dangote’s appeal is a bold public gesture. If enough holders heed it, selling dollars en masse could ease speculative pressure. But structural changes, such as boosting exports, diversifying the economy, and building reserves remain critical for lasting stability.
Nigeria’s fiscal outlook hinges on stabilizing the naira. A stronger currency could lower import costs and curb inflation, while boosting investor confidence and enabling cheaper foreign debt servicing. Dangote’s call, tied to real infrastructure growth, signals a private sector push toward anchoring currency stability and macroeconomic resilience.
