Chairman of First HoldCo, Femi Otedola, has expressed optimism that the naira will strengthen significantly and trade below ₦1,000 to the dollar before the end of the year, citing the expanding operations of the Dangote Refinery and the broader impact of domestic refining.
Otedola said the full-scale operation and production expansion of the refinery would sharply reduce Nigeria’s demand for imported petroleum products, easing pressure on foreign exchange and improving dollar liquidity in the economy.
According to him, domestic refining will cut fuel import bills, lower demand for dollars at the official and parallel markets, and support the Central Bank of Nigeria’s efforts to stabilise the currency.
The Dangote Refinery, Africa’s largest, has gradually increased output across key products, including diesel, aviation fuel and petrol, with expectations of further expansion in the coming months.
Market analysts note that while increased local refining could support the naira by reducing import dependence, exchange rate performance will also depend on factors such as foreign inflows, oil export earnings, fiscal discipline and monetary policy coordination.
Otedola’s comments add to growing optimism among business leaders that structural reforms and domestic production could begin to deliver currency stability after a prolonged period of volatility.