For a deeper dive into these transformative developments and practical strategies, read our whitepaper:
The government's bold moves and a path to stability
Nigeria's path to FX stability has been paved by decisive action from the government and the Central Bank of Nigeria (CBN). The evidence is clear: by late April, Nigeria’s external reserves recorded their first sustained increase in 2025, a tangible sign of positive change.
One of the most significant interventions has been the clearing of the FX backlog. Addressing over $7 billion in previously unfulfilled foreign exchange commitments has substantially eased liquidity constraints and dramatically improved Nigeria’s outlook among foreign investors. This move has been noted by institutions like JP Morgan, who have relayed that the CBN's reforms have "enhanced market transparency," attracting renewed portfolio inflows and contributing directly to exchange rate stability after a period of intense volatility.
Furthermore, the CBN's introduction of an electronic FX matching platform and a new FX code marks a new era of market transparency. These initiatives are designed to enhance efficiency and restore crucial confidence among businesses who rely on predictable FX. In ~March 2025, the impact was visible in the narrow spread between the official and parallel market rates (e.g., N1,540 to $1 official vs. N1 560 parallel at end of March 2025).
Finally, the strategic 'Nigeria First' policy, though recently introduced, aims to boost local production and strategically reduce foreign currency demand. This forward-looking approach seeks to better align supply with domestic needs. Early indicators are promising: companies in sectors like fast-moving consumer goods (FMCG) that have proactively localized their supply chains are already reporting positive results. Nestlé Nigeria’s finance costs were drastically reduced by 89.3% - driven largely by a reduction in FX-related costs.
These early successes, underscore the significant potential of the 'Nigeria First' Policy to build greater resilience and foster sustained growth across multiple industries.
The private sector and refueling recovery
While recent government policy measures have undeniably laid a strong foundation for FX market stabilisation, continued and robust efforts from the private sector are essential to maintain this momentum and ensure long-term economic stability.
Local businesses and exporters are encouraged to adopt aggressive, export-driven strategies. High-potential sectors like agriculture, manufacturing, and, crucially, the creative industries, are paramount.
Did you know Nigeria’s creative sector alone possesses the potential to contribute up to $25 billion annually through music, film, digital media, and artisanal exports? This represents a vast, untapped source of foreign exchange.
Similarly, the telecom sector has been identified as a critical area for reducing foreign currency demand through increased local production. In February 2025, The Central Bank Governor, Olayemi Cardoso, urged telecom companies to localise the manufacturing of key components. Given the sector's foundational role in supporting digital banking, payments, and financial infrastructure, domesticating telecom supply chains would generate wide-reaching benefits across Nigeria’s entire economy, reducing systemic FX demand.
Lastly, the financial sector, comprising of banks and fintechs, is instrumental in attracting and efficiently facilitating foreign currency inflows. Increasing diaspora remittances remains a paramount priority, with the CBN targeting an ambitious $1 billion in monthly inflows.
Powering Nigeria's economic resilience
At Verto, we are not just observers; we are active participants in empowering the private sector to contribute to Nigeria's economic resilience. Our platform directly supports these vital efforts by facilitating seamless cross-border trade, reducing transaction costs by an average of 40%, and accelerating payment processing by 30%.
This efficiency enables businesses to engage more profitably and frequently in regional and global trade, directly strengthening FX inflows into the Nigerian economy.
We also champion local currency settlement; our innovative infrastructure allows businesses to trade with African counterparts in their local currencies. This not only mitigates the inherent risks of USD or EUR dependency but also fosters a more robust and resilient regional economy.
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