Naira’s Projected Drop to N1,993/$1 Puts Medical Imports at Risk
The Nigerian naira is projected to depreciate to N1,993 per US dollar by 2028, according to a report by BMI, a subsidiary of Fitch Solutions.
BMI’s report, titled “Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth”, highlighted Nigeria’s heavy reliance on imports, with over 95 percent of its medical devices sourced from overseas. This dependence, combined with the naira’s anticipated decline, is expected to drive up import costs and limit access to essential medical tools.
This looming depreciation could place additional strain on Nigeria’s healthcare system, which depends heavily on imported medical devices.
“Continued weakness of the naira will increase medical device import costs and erode consumer purchasing power,” the report cautioned, adding, “As the naira weakens, the cost of importing medical devices will continually increase, eroding both the health system and patient purchasing power, especially for essential medical technologies.”
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While the anticipated devaluation may enhance the global competitiveness of locally manufactured devices, BMI noted that structural challenges still hinder local production. The report warned that without significant policy changes and investment, the sector’s reliance on costly imports would persist.
This forecast arrives amid hopes for an economic rebound, but BMI noted that high import costs would likely dampen demand for essential items, including diagnostics, orthopedics, and dental products.
“As the naira weakens, high-cost demand for devices such as diagnostics, orthopedics, and dental products will face particular strain,” BMI noted, highlighting the difficulties of maintaining such imports within an underfunded public health sector.
Since Nigeria’s President Bola Tinubu assumed office in May last year, the naira has lost a significant portion of its value, partly due to his policy on multiple exchange rates. As of Monday, November 11, Neusroom observed that the naira traded above N1,680 per dollar.
