Renowned economist and managing director of Financial Derivatives Company (FDC), Mr Bismarck Rewane, has estimated the fair value of the naira at about N1,257 to the US dollar.
Rewane posits that the local currency is undervalued by approximately 11 per cent when assessed using the purchasing power parity (PPP) model.
Rewane made the submission during his keynote address at the 2026 Economic Outlook organised by the Association of Corporate Treasurers of Nigeria (ACTN), where he anchored the session and offered a detailed analysis of the structural and cyclical factors influencing Nigeria’s exchange-rate movements.
He noted that currencies typically converge towards their PPP-implied values over a five-year horizon.
According to him, the appropriate exchange rate based on current PPP estimates stands at N1,256.79 to the dollar, reinforcing the view that the naira remains below its fair valuation level.
At the start of his presentation, Rewane emphasised that the primary responsibility of a corporate treasurer is the optimisation of a company’s liquid resources.
He said that in carrying out this role, treasurers must operate with cautious optimism, particularly in managing foreign-currency exposure and foreign-exchange-related activities.
