Market News

The naira, which has shown some degree of stability over the past few months, is expected to maintain its current trajectory following the launch of the Non-Resident Diaspora Bank Verification Number (NRBVN) by the Central Bank of Nigeria (CBN).

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 percent compared to the N1,602.18 quoted at the beginning of the month, according to data from the CBN.

In the parallel market, commonly referred to as the black market, the naira has also traded within a relatively narrow range, hovering between N1,600 and N1,625 per dollar. However, 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.

Cardoso described the NRBVN as a significant milestone in Nigeria’s push for greater financial inclusion and innovation. “The NRBVN is a dynamic, evolving platform, a bridge connecting Nigeria with its global citizens, and reaffirms the Bank’s commitment to lowering remittance costs and expanding financial inclusion for all Nigerians,” 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.

The launch of the NRBVN comes on the heels of the CBN’s release of a new Foreign Exchange (FX) Code on January 28, 2025. The code is aimed at enhancing market liquidity, promoting transparency, and guiding the conduct of market participants in Nigeria’s foreign exchange sector.

With the NRBVN platform now operational, the CBN hopes to further integrate diaspora Nigerians into the formal financial system, improve FX inflows, and provide a seamless channel for remittances that supports the overall stability of the naira.