Market News

BY  Hope Moses-Ashike 

The naira on Wednesday appreciated further at the official foreign exchange (FX) market, a day after the Central Bank of Nigeria (CBN) launched the Non-Resident Diaspora Bank Verification Number (NRBVN).

After trading yesterday, the naira gained N3.33 as the dollar was quoted at N1,596.70, marking a gain of 0.2 percent compared to N1,600.03 quoted on Tuesday at the Nigerian Foreign Exchange Market (NFEM), data from the CBN showed.

In the parallel market, commonly referred to as the black market, the naira weakened by N2 on Wednesday, with the dollar exchanging at N1,627 compared to N1,625/$ on Tuesday.

On Tuesday, the CBN, in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), formally launched the Non-Resident Diaspora Bank Verification Number. The initiative is designed to strengthen financial ties between Nigeria and its diaspora community and boost foreign exchange inflows into the country.

Olayemi Cardoso, governor of the CBN, reaffirmed the Bank’s goal of attracting $1 billion in monthly diaspora remittances. He underscored the importance of adhering to the FX Code and regulatory frameworks as part of efforts to ensure market stability and build trust among stakeholders.

Ayokunle Olubunmi, head of financial institution ratings at Agusto & Co., said the NRBVN is not only targeted at raising foreign currency (FCY) deposits alone but to allow non-resident Nigerians maintain accounts with Nigerian banks in any currency.

“The FCY inflow on account of the initiative will be small, at least in the near term, relative to Nigeria’s total inflow. However, it will help the banks to expand their customer base and increase transaction income,” he said.

Ayodele Akinwunmi, senior relationship manager at FSDH Merchant Bank, noted that the introduction of the NRBVN would contribute significantly to sustaining the naira’s value. “This is because diaspora remittance is one of the main sources of FX flows to the country. With the huge number of Nigerians who moved abroad in the last five years, such an initiative is a great move to drive investment flows from them,” he said.

Also commenting on the development, Tilewa Adebajo, chief executive officer of CFG Advisory, said the NRBVN represents a step in the right direction toward getting the Nigerian diaspora more actively involved in the local financial markets. He pointed out that Nigerians abroad are expected to remit between $25 billion and $30 billion annually, making them a vital source of foreign exchange for the country.

Since the introduction of the Electronic Foreign Exchange Matching System (EFEMS) on December 2, 2024, the naira has witnessed relative improvement in value. For the first eight trading days of May 2025, the naira appreciated by N2.15, with the dollar quoted at N1,600.03 at the Nigerian Foreign Exchange Market (NFEM). This represents a slight gain of 0.13 per cent compared to the N1,602.18 quoted at the beginning of the month, according to data from the CBN.

The naira has also traded within a relatively narrow range, hovering between N1,600 and N1,625 per dollar in the black market.