Nigeria’s forex market is now more stable. This is restoring confidence in the telecom sector. Investors see this as a sign of growth and innovation.
By year-end, the official exchange rate stabilized at N1,535 to N1,538 to the dollar. Parallel market rates stayed between N1,650 and N1,655. This stability is a relief after months of volatility.
Tony Emoekpere, President of ATCON, said forex stability is key for planning and investment. “Instability was the problem. Now, with a stable range, we can plan, and investments will follow,” he explained. He believes this stability, along with supportive policies, will help the sector grow.
MTN Nigeria CEO Karl Toriola expects a stable forex market in 2025. He believes the worst of the volatility is over. “We just need a relatively stable currency,” he said. This will help the sector adapt, even with a slowly declining currency.
Forex instability in 2024 caused disruptions. Gbolahan Awonuga from ALTON pointed out how the dollar’s rise from N460 to over N1,600 complicated equipment imports and funding. This instability hurt telecom operators’ ability to generate returns.
Data center operator Ikechukwu Nnamani shared how forex fluctuations harmed business plans. He said if the naira depreciates, the same service priced at $500 could drop to $300.
The CPPE credits reforms and Central Bank interventions for market stability. Dr. Muda Yusuf of CPPE predicts stability will continue in 2025 due to stronger foreign reserves, now above $40 billion.
Telecom companies in Nigeria are hopeful. They hope forex stability will drive investment and growth in the sector.