The Naira’s value is predicted to drop to N1,993 per US dollar by 2028, according to a report by BMI, a subsidiary of Fitch Solutions.
This decline would significantly impact Nigeria’s pharmaceutical industry, particularly when importing essential medical devices, as the country relies heavily on imports, accounting for over 95% of its medical devices.
The report highlights that Nigeria’s medical devices sector will face operational and demand challenges despite an anticipated economic rebound.
The continued weakness of the Naira will increase medical device import costs and erode consumer purchasing power.
“We expect that the naira will end 2028 at N1,993/$ from N306/$ in 2018. As the naira weakens, the cost of importing medical devices will continually increase, eroding both the health system and patient purchasing power especially to invest in essential medical technologies given underfunding of the public health sector.
“This would particularly affect high-cost demand for devices such as diagnostics, orthopaedics and dental products. On the export front, a weaker naira will enhance the competitiveness of locally manufactured medical devices, fostering growth in the sector,” the report stated.
Nigeria’s Economic Outlook
Nigeria’s economy is expected to recover in 2025, with a growth rate of 3.0% predicted for 2024. However, persistent issues such as high inflation, tighter monetary policies, and weak foreign direct investment could weigh on the growth of the medical devices sector.
Current Naira Value
As of November 11, 2024, the Naira traded at N1,681.42 per dollar, reflecting a marginal decline of 0.15% from Friday’s closing rate.
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