The deal covers a Canadian Payment Service Provider and Money Services Business. With it, Nomba can hold and move Canadian dollars locally and settle those funds directly into naira and other African currencies. 

The setup is built for business payments, not personal remittances.

Trade between Africa and Canada already runs through sectors such as oil and gas services, commodities, consumer goods, professional services and technology. 

Payments in that corridor have mostly passed through correspondent banks, usually taking days and coming with high charges and clouded exchange rates.

Nomba says the new structure removes several of those steps. Businesses can open local CAD accounts in Canada, settle directly into African currencies, and receive funds the same day. The company says foreign exchange and transaction costs can drop by as much as 40 to 60%.

“Cross-border trade payments for African businesses are still built on infrastructure that was never designed for speed or transparency,” said Yinka Adewale, chief executive of Nomba. “Owning regulated infrastructure allows us to remove layers of complexity and give businesses predictable, reliable rails they can build on.”

The company is pitching the service to exporters, importers, professional firms and multinationals trading between Africa and North America. It is not targeting consumer remittance flows.

One early user is a Nigerian oil and gas services firm that bills Canadian clients regularly. Before switching, payments took three to five working days and required manual reconciliation. 

With Nomba, the company now uses a dedicated Canadian dollar account and receives funds the same day, which it can use immediately for wages, suppliers or local investment.

“For businesses, reliability matters more than novelty,” Adewale said. “They want payments to settle when expected and funds to be usable immediately. That’s what owning the rails makes possible.”

The acquisition was completed in the second quarter of 2025. Nomba is putting about $2m into the Canadian entity to strengthen systems and expand capacity. In January 2026 alone, it processed $3.4m through the Canadian setup.

“Now that we’ve demonstrated consistent same-day settlement and rock-solid reliability, we’re opening access more broadly,” Adewale said.

“From a regulatory standpoint, all FX operations run through our Canadian entity, which means businesses are accessing fully licensed, compliant cross-border banking infrastructure.”

Canada is the first in a series of overseas markets where Nomba plans to own regulated payment infrastructure. The company already handles trillions of naira each year across payments and business banking in Africa.

In November 2025, it launched operations in the Democratic Republic of the Congo after a year of groundwork. It holds a Messenger Financier licence and an Aggregator licence from the Central Bank of Congo, allowing it to move money in and out of the country. 

Payments there run through banks including Rawbank, Equity BCDC and TMB, as well as mobile money services such as M-Pesa, Airtel Money and Orange Money.

Nomba says the Congo launch, like Canada, was about proper management of payments infrastructure rather than market size. Canadian companies source minerals and other commodities from the region, but payments have often been slow and fragmented.

In holding licences in both Canada and parts of Africa, the company says it can offer local-currency accounts, transparent pricing and same-day settlement on both sides.

“Africa to Canada is live,” Adewale said. “Africa to the rest of the world is next. Our focus is building global-standard business banking infrastructure that allows African companies to operate locally while being structurally ready to trade anywhere.”

This regulatory approval aligns with the apex bank’s ambitious target to scale monthly inward remittances to $1 billion by 2026. 

By authorising Finlogic to facilitate direct inward transfers, the CBN strives to capture private capital within the formal banking system, thereby supporting the stability of the Naira and enhancing national economic resilience.

The IMTO licensing allows Finlogic to operate with greater autonomy, bypassing traditional intermediaries to offer a more direct path for funds entering the country. 

This operational efficiency is expected to result in faster settlement cycles and improved pricing for the Nigerian diaspora, who remain a vital pillar of the nation’s financial stability.

Finlogic’s entry into the IMTO space is underpinned by its existing Money Services Business (MSB) licence from Canada. 

This dual-licence status establishes a secure, compliant corridor for North American inflows, ensuring that transactions meet the highest global standards of transparency and institutional security.

“Our commitment is to ensure that the contributions of Nigerians abroad are integrated into the domestic economy with absolute integrity,” said Joseph Afolabi, founder and CEO of Finlogic.

“This IMTO licence serves as a seal of trust, allowing us to provide a dependable gateway for inward transfers that directly contribute to Nigeria’s broader macroeconomic objectives.” 

Afolabi further emphasised that Finlogic’s seven-year trajectory has been defined by a focus on solving structural settlement challenges. 

“We have built a technology-led infrastructure designed to remove the friction associated with inward capital flows. By working closely with local banking partners, we are supporting the CBN’s mandate to maintain a transparent and robust foreign exchange market.”

As Nigeria seeks to double its official remittance receipts, the role of regulated, direct-access operators like Finlogic becomes increasingly central to the country’s financial inclusion and liquidity strategies.

Speaking at a stakeholders’ dialogue in Akure, Ondo State, the minister said the reforms under the Bola Tinubu administration’s “Renewed Hope” agenda are beginning to deliver early wins: faster GDP growth, easing inflation and a stabilising naira.

What the Government Calls Wins

The minister declared that the removal of petrol subsidies has made Nigeria’s resources “benefiting the many, not the few”.

The reforms are credited with enabling larger investments in direct benefit transfers, student-financing under NELFUND and an ambitious 90,000-kilometre national fibre-optic rollout aimed at expanding digital access.

The World Bank Country Director for Nigeria, Matthew Verghis, described the economy as “at a turning point”, citing signs of macro-stability emerging from the reform package.

Caveats and Unfinished Business

While the broad narrative is positive, both government officials and development partners cautioned that the gains are still early and uneven. Verghis emphasised that “millions of Nigerians are yet to feel the benefits of macroeconomic reforms”.

Also, the reforms have come with political and social cost. The ministerial team conceded that although new tax-legislation efforts have removed or suspended unfriendly levies, such as the five per cent excise tax on airtime and data, they acknowledged that reforms “have come with pains”.

What This Means for Business & Economy

Improved investor sentiment: A stabilising FX market and clearer fiscal direction make Nigeria a more attractive destination for foreign and domestic capital.

More resources for infrastructure and digital-economy investment: Freed-up funds from subsidy removal mean higher potential for growth-oriented spending (e.g., fibre-optic networks, student loans) rather than subsidy maintenance.

Greater accountability and transparency: With the government openly linking reforms to redirected public resources, pressure increases for better tracking, auditing and results-delivery.

Opportunity for tech and fintech firms: Digital access initiatives and regulatory clarity open doors for startups in payments, digital infrastructure, remote-work outsourcing and enterprise tech.

Looking Ahead

• Will the real benefits of these reforms reach everyday Nigerians in living standards, jobs and purchasing power?
• How will the government ensure that savings from subsidy removal are fully invested in economic growth instead of offset by new borrowings or unfunded liabilities?
• As the 2026 tax-law overhaul looms, how will businesses leverage these macro reforms for investment, compliance and growth?

Nigeria’s forex situation is like an unpredictable weather forecast—one day, the Naira is standing strong, and the next, it’s collapsing faster than your mobile network. In 2024, Foreign Direct Investment (FDI) inflows dropped by 65.33%, thanks to the unstable Naira, inflation, and restrictive forex policies. 

Nigeria’s economy is so tied to foreign exchange (forex), with many businesses depending on imported raw materials, equipment, and finished goods. 

If you’re planning to build a business that depends on dollar-denominated imports, you might as well start budgeting for stress therapy.

But then, thriving without forex dependence is beyond a survival strategy, it’s a smarter, more sustainable way to do business. The future belongs to those who leverage local resources, indigenous innovation, and self-sufficiency. If the forex gods refuse to smile at us, why not build businesses that don’t need their blessings in the first place?

So, let’s walk you through some strategies for building a business that thrives without the limitations of forex fluctuations in Nigeria.

Understanding the Forex Dependency Problem

Nigeria’s dependence on foreign exchange is a structural issue rooted in several factors:

• Import Reliance: Many businesses depend on imported raw materials, from food processing to manufacturing. This creates vulnerabilities when forex rates fluctuate.
• Naira Volatility: A weak and unstable currency makes it expensive to purchase goods in dollars, negatively affecting profit margins.
• High Cost of Imports: Import tariffs, logistics expenses, and delays at the ports further increase business costs.
• Forex Allocation Challenges: Access to forex from the Central Bank of Nigeria (CBN) is restricted, forcing businesses to rely on the unstable parallel market.

These factors make it imperative for Nigerian entrepreneurs to rethink their business models by minimising import dependence and prioritising local alternatives.

Identifying Business Ideas That Don’t Depend on Forex

Starting a business without relying on foreign exchange requires a shift towards local production, import substitution, and value addition. Viable business ideas include:

Agriculture & Food Processing

Nigeria has abundant agricultural resources, yet the country spends billions of dollars importing food items like wheat, rice, and processed dairy products. Entrepreneurs can focus on:

• Local rice production and milling.
• Cassava and yam processing into flour, starch, or ethanol.
• Palm oil refining and packaged local vegetable oils.
• Fish farming and poultry processing.

Manufacturing with Local Materials

Manufacturing in Nigeria usually suffers due to a lack of local raw materials, but several industries can thrive by using indigenous resources:

• Textiles: Revitalising the cotton industry and producing local fabrics.
• Leather Goods: Nigeria’s leather is world-class, yet most leather products are imported.
• Furniture Production: Using local wood instead of imported alternatives.
• Ceramics & Tiles: Nigeria has abundant clay deposits for local tile production.

Tech & Digital Services

Unlike manufacturing, digital businesses require little or no forex dependency. Entrepreneurs can build solutions in:

• Software development and SaaS solutions for local businesses.
• Fintech services leveraging mobile banking and digital payments.
• Digital content creation, online media, and marketing agencies.
• E-commerce platforms focused on local goods.

Recycling & Waste Management

Waste is a major environmental issue in Nigeria, but it also presents a huge business opportunity:

• Converting plastic waste into construction materials like tiles and pavement blocks.
• Recycling paper and cardboard for packaging materials.
• Processing scrap metal into usable industrial components.

Renewable Energy Solutions

Nigeria’s power supply challenges create an opportunity for businesses focused on:

• Locally assembled solar panels and battery storage.
• Biogas energy from agricultural and household waste.
• Energy-efficient appliances designed for local use.

Sourcing Local Raw Materials and Inputs

Many Nigerian businesses default to imported materials, even when viable local alternatives exist. A key strategy is to develop strong local supply chains:

• Partnering with local farmers and cooperatives to source raw materials.
• Utilising indigenous substitutes—e.g., using cassava flour instead of imported wheat flour.
• Investing in locally produced machinery rather than importing expensive equipment.

In strengthening backward integration, businesses can slash costs, improve supply stability, and reduce forex exposure.

Leveraging Government Policies and Support

The Nigerian government has introduced various policies and funding opportunities to encourage local production. Entrepreneurs should take advantage of:

• The Central Bank of Nigeria’s (CBN) Intervention Funds: Targeted at agriculture, manufacturing, and SMEs.
• Bank of Industry (BOI) Loans: Supporting businesses that invest in local production.
• Small and Medium Enterprises Development Agency of Nigeria (SMEDAN): Provides funding and training for SMEs.
• NIRSAL Loans for Agribusiness: Offers credit guarantees and financing support.

Understanding these policies and knowing how to access these funds can help businesses grow without needing forex-based financing.

Overcoming Key Challenges

Though there are opportunities, starting a forex-independent business comes with its own challenges. Entrepreneurs must develop strategies to close infrastructure gaps, financing difficulties, and market access issues:

• Power Supply: Solar energy solutions and backup generators can reduce reliance on the unreliable national grid.
• Logistics and Transportation: Partnering with local delivery networks and using digital tracking can help manage supply chains efficiently.
• Access to Capital: Beyond government grants, entrepreneurs can explore cooperatives, crowdfunding, angel investors, and venture capital.
• Consumer Perception: Nigerian consumers often perceive local products as inferior. Branding and quality control are essential to changing this mindset.

Actionable Steps for Entrepreneurs

To build a successful business without forex dependency, entrepreneurs should:

1. Conduct a Market Analysis: Identify industries with strong local demand and available raw materials.
2. Build Local Supply Chains: Develop relationships with local producers and manufacturers.
3. Leverage Government and Private Sector Support: Apply for grants, loans, and incentives.
4. Adopt Digital Strategies: Use online platforms for sales, marketing, and distribution.
5. Focus on Quality and Branding: Invest in product quality and market positioning to attract customers.

Starting a business in Nigeria without relying on foreign exchange is a necessity for sustainability, not an alternative. 

The combination of import substitution, local value addition, and digital growth gives entrepreneurs room for opportunities to innovate.

But first, Nigeria’s abundant natural resources, government support, and digital tools, need to be leveraged so businesses can thrive in a forex-constrained economy while contributing to economic resilience. 

The resilience of Nigerian entrepreneurship is attached to self-sufficiency, adaptability, and strategic growth— businesses should take up these principles to succeed.

As a keen observer of Nigeria’s technology and digital economy sector, I’ve been impressed by your low-key yet effective approach to driving progress.

Despite the ministry’s robust activities, your behind-the-scenes style suggests a commitment to substance over showmanship.

Given your tenure as Chief Technology Officer at Interswitch and your entrepreneurial endeavours at Ceviant, your expertise in the digital space is undeniable. This positions you uniquely to offer strategic advice to the government.

I’m compelled to bring to your attention the precarious state of the telecom sub-sector. Nigeria’s digital economy has tremendous potential, but regulatory challenges, infrastructure deficits, and market pressures threaten the very survival of telecom operators.

The sector’s growth is hindered by issues such as multiple taxation, issues over right of way, infrastructure damage and the unsustainable pricing framework amongst others.

I think I hit the point too early. Let me provide some context; a historical perspective on the sector’s development is essential to grasp the current challenges.

When the Global Systems for Mobile Communications (GSM) was first introduced into the Nigerian market in 2001, the acquisition of a cellular device swiftly became a badge of distinction, signifying one’s immersion in the technological revolution of the 21st century.

The devices became the exclusive purview and financial burden of the elite, relegating many middle-class households to sharing a solitary device among its members. It was expected.

The cost of procuring a Subscriber Identity Module (SIM) hovered between N40,000 to N50,000 (about $384 to $480 at the time), while iconic models such as the NOKIA 3310 and Samsung series commanded prices exceeding N80,000 (about $769) to over N100,000 (about $961).

At inception, networks operated within the 900 and 1800 MHz spectrum with a billing structure set at about N50 per minute, until the introduction of the per-second billing system which revolutionised the industry. As such, barely 10% of the country’s 125-million population could afford to own a device with regular credit recharge.

Mr. Special Adviser, you’re aware that before the arrival of such devices with an unattainable luxury status for the economically disadvantaged, Nigerians had long grappled with problematic services from the oft-maligned Nigerian Telecommunications Limited (NITEL).

Until 2001, NITEL’s 16-year operation was plagued with citizen discontent over poor management as it maintained monopoly over Nigeria’s telecommunications and data services.

The arrival of GSM — spearheaded by MTN, Econet (now Airtel) and MTEL months apart in 2001, and Globacom two years later in 2003 — to relieve the troubled service provider, therefore, changed everything.

In mobile phone accessibility and internet service affordability progress since that time, the numbers have been staggering.

By 2022, two decades after GSM introduction, more than 222 million mobile phone subscribers existed in Nigeria according to the Nigerian Bureau of Statistics and the Nigerian Communications Commission (NCC), out of which over 215 million were active.

The projections for the future are just as phenomenal. A steady surge in smartphone adoption is expected across the country from 2024 to 2029, with the user base estimated to reach a new peak in the next five years.

Network subscriptions costs are also among the lowest in the continent. Mobile data subscriptions in Nigeria, today, are available for as low as N25 while call rates go as low as 9 kobo per second.

However, considering Nigeria’s business climate in recent years, providing affordable services to citizens while maintaining high-standard infrastructure presents the greatest challenge for the telecommunications industry and operators in the country.

Experts within the sector and the economy like Karl Toriola, CEO of MTN Nigeria, and Bismarck Rewane, CEO of Financial Derivatives, have postulated that the sector is at the verge of collapse, one which portends consequential risk to other sectors which rely on the critical services the Telcos provide.

Nigeria’s economy has experienced two major recessions over the last 10 years and currently faces one of its most difficult periods of uncertainty.

Recent market conditions and currency devaluation have plunged the value of Naira in the foreign exchange market, resulting in skyrocketed prices of commodities.

Unfortunately, the telecommunications sector, which contributes approximately 16% to Nigeria’s GDP, is, like other sectors, not immune to the profound repercussions of the prevailing economic upheavals.

The telecoms industry, like many others in the country, is heavily reliant on foreign exchange (FX) for the procurement of essential equipment, infrastructure, and technology.

With a significant portion of telecom equipment and services being imported from foreign markets, fluctuations in currency exchange rates directly impact the cost of operations for industry players.

As the value of the Naira fluctuates against major currencies such as the US Dollar and Euro, the cost of procuring equipment and services denominated in foreign currencies escalates, placing immense strain on the financial resources of telecom companies.

MTN Nigeria and Airtel were among 11 listed companies, including Nestle and Dangote Cement Plc, which recorded 2.02 trillion naira FX losses in H1 of 2024.

Mobile network operators in the telecommunications sector, whose tariffs are rigorously regulated by the NCC, therefore, face a dilemma in balancing investments towards sustaining quality and affordable services for their vast subscriber base with their goal of achieving profitability.

For a sector battling various environmental and infrastructural impediments including frequent fibre cuts due to road construction and vandalism, right-of-way challenges, and exploitative rent-seeking practices, maintaining operational efficiency amidst prevalent economic adversities become increasingly daunting.

None of these existing challenges are alien to industry regulators and stakeholders. Operators’ advocacy for critical infrastructure protection in the ICT/telecommunications sector in recent years has especially served as a striking illustration of a cry for proactive actions to curtail the profound financial impact of such obstacles on its operations.

Yet, while these challenges persist, mobile network operators have remained unflinching in their commitments to ensuring seamless connectivity, service reliability, and pricing affordability for their subscribers.

Despite Nigeria’s headline inflation rate surging to a 27-year peak of 29.9% in December 2023 and reaching 31.7% in March 2024, the telecoms industry, compared to other sectors adeptly adapting to Nigeria’s changing market conditions, continues to find itself traversing the intricate terrain of regulatory compliance and financial viability.

In the mobile market which maintains a strong connection to the telecoms sector, for instance, prices of mobile phones, today, have nearly doubled to reflect the rising cost of production and import, while call and data tariffs largely remain the same they have been for over a decade.

A similar rise in cost has been evident in food prices which increased to over 30% in February, impacting the fast-moving consumer goods (FMCG) sector.

The sector has since adjusted, with FMCG corporations including brewing companies increasing product prices in tandem with the high cost of raw materials and production.

Companies in other sectors providing domestic consumer needs, such as Pay TV companies and Discos, have also duly followed suit by conducting price reviews in recent times.

It should also be noted that energy costs have been a significant factor in the general upward pressure on costs across the economy, particularly affecting telecom companies, for whom diesel accounts for approximately 35% of their operational expenses.

While these price adjustments may be inconvenient for consumers due to limited purchasing power, they are more than necessary for businesses to continue to meet demands, deliver value to shareholders, and contribute significantly to the Nigerian economy.

It is especially pivotal to recognise the broader socio-economic implications for Nigeria if the telecoms sector sticks with its pricing plans as other sectors adapt.

The industry is reputable for its crucial role in driving economic growth, creating employment opportunities, and improving digital inclusion efforts across the country.

Notably, over 15,000 have been directly employed by licensees in Nigeria’s $75.6 billion telecoms sector, according to a December 2022 report by the NCC.

Also, as of second quarter 2023, the Information and Telecommunications industry ranked highly among activity sectors contributing the most to the country’s GDP.

Not least of mobile service providers’ critical contributions to socio-economic issues is their position at the forefront of Nigeria’s digital inclusion ambitions, which sees them providing more than 83 million citizens with the opportunity to benefit from prompt information access and exchange necessary for increased social and business productivity.

A lack of adjustments within the sector amidst FX-dependent pressures and rising inflation will indubitably pose a threat to these transformative indicators in the next few years.

When telecom companies struggle to maintain and expand their infrastructure, there are higher chances of network congestion, dropped calls, and slow internet speeds that can undermine productivity, hinder business operations, and diminish the overall quality of communication services.

Operators’ ability to invest in infrastructure upgrades, network expansion, and technological advancements could be significantly hampered, significantly impacting coverage and service quality.

They can’t afford to test consumers’ patience in this regard.

Quality of Service (QoS) in the sector is, indeed, deemed non-negotiable among consumers. Regardless of any situation within or beyond their control, operators are expected to uphold high standards of service delivery to remain competitive and retain customer loyalty, and any compromise can have far-reaching consequences.

But maintaining and improving on progress made thus far in the sector would be impossible without access to adequate financial resources for further investments.

It is, as such, a critical time to employ new adaptive strategies for the sector to achieve profitability and survive in an increasingly competitive landscape.

Operators such as MTN Nigeria, Airtel, Globacom, and 9Mobile have, commendably, demonstrated an understanding of the grim economic situation impact on citizens’ spending power by adhering to regulators’ rules and showing restraints in pushing for higher charges.

Their show of empathy, however, could be their Archille’s nemesis in a brutal business and economic climate. Hence, the review of tariffs to reflect new economic realities, despite regulators’ reluctance, may be overdue.

At this crucial moment, the onus falls on regulators to ensure consumers are adequately enlightened on how an upward revision of tariffs is imperative for the industry’s viability, as it would provide crucial funding for network infrastructure upgrades necessary for the continued delivery of world class services.

A measured review of current tariffs, with pricing plans that are adaptive and responsive to the changing business and economic climate, would ensure the industry mitigates potential socio-economic and business risks.

Although there would be a need for regulators to strike a delicate balance between consumer protection and the sustainability of the telecom industry.

Nigeria’s leading telecoms companies, including MTN, Glo, Airtel & 9mobile, have expressed their readiness to collaborate with regulators on reasonable adjustments in call and data tariffs to mitigate the cost of running their networks.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the telcos, speaking as a unit under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), explained in a recent statement.

As the economic pressures on the sector intensify, consumers would hope that the operators’ concerns are understood, and urgent actions are taken to ensure their continued access to improved quality services, before the inevitable damaging impact of a lack of it becomes more pronounced than imagined.

As I conclude, I must emphasise that your understanding of the sector is evident from your track record. Your article published on TechCabal on August 21, 2024, compellingly argued the significance of the NIMC for Nigeria’s digital future.

Building on this, the NIMC and Nigeria’s digitalization efforts rely heavily on telecom sustainability and development.

Consequently, Nigeria’s digital transformation and leveraging technology for national economic growth hinge on telecom efficiency, underscoring the imperative to address the sector’s concerns.

I acknowledge that you are neither the supervising minister for the industry nor the regulator. Incidentally, the current individuals holding these positions are doing an exemplary job, given the circumstances.

Nevertheless, your in-depth knowledge of the industry and the trust you’ve earned from the president and minister position you uniquely to intervene effectively.

You now have a critical opportunity to bring to the president’s attention the plight of this vital sector, often described as the ‘golden goose’ of Nigeria’s economy.

By advocating for strategic policy decisions, such as cost-reflective tariffs, tax harmonization, intervening in right of way issues amongst others, you can help restore investor confidence, drive infrastructure development, refocus on key objectives, and enhance network optimization for both private and public entities.

*Edidiong Samuel Akpabio is a Nigerian public commentator, researcher and academic. He can be reached via: esakpabio@yahoo.co.uk

Initially, the health sector was the most affected, but now, the issue has spread wide across the country. Citizens with or without skills are increasingly thrusting away.

Despite various initiatives aimed at reversing this trend, such as the Nigerian Diaspora Direct Investment Summit (NDDIS), Nigerians in Diaspora Commission (NIDCOM) and 3MTT, among others, economic challenges continue to outpace progress. 

Since 2021 on average, 40 doctors leave Nigeria every week. This exodus has greatly impacted the healthcare system, leading to a shortage of medical professionals and this has not changed till now. 

As of June 2021, out of 80,000 doctors registered with the Medical and Dental Council of Nigeria, only 35,000 were practicing within the country and as at 2022, reports revealed just 24,000 licensed doctors in the country. This shows that more than half of the registered doctors have left Nigeria or are not practicing.

Thousands of nurses have also left Nigeria since the start of the COVID-19 pandemic, seeking better opportunities abroad. This migration has further affected the already overburdened healthcare system.

The Tech Industry

Many skilled IT professionals are leaving Nigeria for better opportunities in countries like Canada, the UK, and the US. This migration is driven by the search for better working conditions, higher salaries, and more stable environments. Even the cost of phones and laptops for work is a big challenge.

The Educational Sector

University lecturers and researchers are also part of the brain drain phenomenon. The Academic Staff Union of Universities (ASUU) has reported that many lecturers are leaving Nigeria due to poor funding of universities, inadequate research facilities, and low salaries. This trend is detrimental to the quality of education and research in the country.

The economic impact of brain drain is huge. The loss of skilled professionals affects various sectors, leading to reduced productivity and slower economic growth. It also increases the burden on the remaining workforce, who often have to take on additional responsibilities.

Key Initiatives to Enhance Job Creation

To address this, the Nigerian government and various organisations have launched several initiatives aimed at creating jobs and retaining talent.

Programs like the Nigerian Diaspora Direct Investment Summit (NDDIS) and the establishment of the Nigerians in Diaspora Commission (NIDCOM) have been built to engage the Nigerian diaspora in national development. But still, the problem outweighs the efforts.

The 3 Million Tech Talent (3MTT) Initiative, targeting the training of three million tech professionals by 2030; the Nigeria Economic Sustainability Plan (NESP), designed to support SMEs and improve infrastructure; the N-Power Program, which offers skills and employment opportunities to youth; and the National Youth Investment Fund (NYIF), which provides financial support to young entrepreneurs. These have not been able to reduce the brain drain issues in Nigeria, because every seven out of 10 citizens still want to leave the country. 

Let’s talk about the “Why”

The kind of economic challenges that hit Nigeria from time to time are such that not everyone foresees or fathoms. This includes the subsidy removal, but let’s delve into others:

Inflation

Inflation hit an all time high this year, and these high rates have cut short the purchasing power of Nigerians. The cost of living is not growing at the same pace of solutions delivered by the government, making it difficult for many to afford basic necessities.

Increased food insecurity across the country, the high cost of internet data, limiting access to digital resources and opportunities for many Nigerians, rising transportation and fuel costs continually strains finances, affecting the ability to commute and access essential services. All of these goes without saying. 

Even the high cost of phones and laptops makes it challenging for many to participate in the digital economy.

Can we even leave out the devaluation of Naira against the Dollar which has made imports more expensive? Definitely not. 

The economic hardships led to widespread protests across Nigeria and even with this, more than 1,000 protesters were detained during the #EndBadGovernance protests.

Despite remittances from Nigerians abroad contributing to the economy, this is obviously not enough. In 2020, remittances amounted to about $17.2 billion, providing a huge source of foreign exchange, but what’s to show for this?

Discouraging Investment 

These economic issues are discouraging both local and foreign investments, impacting job creation and overall economic growth. The lack of economic stability affects the confidence of businesses and potential investors, further increasing the brain drain issue.

Corruption and Bureaucracy

Corruption and bureaucratic inefficiencies are major obstacles to effective policy implementation and economic development. The misallocation of resources, lack of transparency, and cumbersome administrative processes is damaging efforts to create sustainable employment opportunities. 

Skills Mismatch

An unignorable challenge in the job market is the mismatch between the skills of job seekers and the needs of employers. Despite training programs like 3MTT, many graduates face difficulties finding relevant employment due to this disconnect. After the training, what next? 

Limited Access to Capital

Access to capital is another issue for many aspiring entrepreneurs. Although initiatives like the NYIF aim to provide financial support, the overall availability of funding for startups and small businesses is still limited. Limited access to capital affects the ability of businesses to grow, create jobs, and contribute to economic development.

Initiatives such as the NIRP, 3MTT, and N-Power are commendable and necessary for job creation and talent retention. However, addressing the foundational economic challenges are highly necessary to ensure the long-term success of these initiatives. 

Until then, the economic challenges will continue to outpace progress, and the brain drain issue will remain a pressing concern for Nigeria.

The foreign exchange reserves dropped significantly as the CBN continues in its efforts at defending the naira.

On March 18, 2024, the FX reserves stood at $34.45bn, but by April 3, it had dropped to $33.50bn, based on the latest data from the CBN.

Before the current decline, the reserve had been steadily growing, witnessing a remarkable 43-day surge between February 5 and March 18, 2024, during which it appreciated by $1.28bn.

The CBN attributed this rise to increased remittance payments from Nigerians abroad and heightened interest from foreign investors in local assets, including government debt securities.

Additionally, reforms in the foreign exchange market and an increase in oil production contributed to the reserve growth.

However, the trend since March 18 indicated a significant drawdown in the reserve. After peaking at $34.45bn, it gradually declined; $34.39bn on March 19, $33.57bn by April 2, and finally $33.50bn by April 3.

This rapid decline of $1.02bn within 18 days underscores the pressure on the reserve as efforts continue to stabilise the local currency.

The CBN has been actively intervening in the foreign exchange market to support the naira, which has faced pressure from various economic factors.

These interventions often involve the sale of dollars to maintain liquidity in the market, a strategy that has likely contributed to the decrease in FX reserves.

During the 18 days under review, the Central Bank of Nigeria made two significant announcements. First, it declared the complete clearance of the valid foreign exchange backlog.

Second, it facilitated the sale of foreign exchange to Bureau De Change operators in Nigeria at an exchange rate of N1,251/$1.

Usually, Nigeria’s foreign exchange reserve reflects the country’s balance of payments and its ability to meet international obligations.

A substantial decline in reserve can erode investor confidence and potentially lead to a credit rating downgrade, which would further impact the nation’s borrowing costs.

The International Monetary Fund recently projected that Nigeria’s foreign reserve would experience a significant reduction, plummeting to $24bn by 2024.

The IMF foresaw a challenging period for Nigeria’s financial account through 2024–25, driven by the absence of new Eurobond issuances, substantial repayments of existing funds and Eurobonds totalling $3.5bn, and continued portfolio outflows. (Punch)

Despite challenges posed by the volatile currency exchange rates, Airtel Africa remains resilient, focusing on its core strengths and strategies to counterbalance the impact and sustain its growth trajectory.

The telecommunications giant, faced a significant hurdle due to currency devaluation, leading to a decline in reported currency revenues by 4.7% in Q2 ’24. 

However, the company’s constant currency revenues experienced an impressive 19.0% increase during the same period, reflecting the underlying strength of its operations.

Airtel Africa’s mobile money segment, a key driver of its revenue, had a substantial 30.9% growth in constant currency despite the adverse effects of foreign exchange fluctuations. With 31.5 million Airtel Money customers, the company’s aim to provide accessible financial services remains steadfast. 

Despite the challenges presented by the dynamic FX market, Airtel Africa’s CEO, Olusegun Ogunsanya, expressed confidence in the company’s strategies to navigate these obstacles. He emphasized the company’s sustained efforts to drive efficient and long-term growth, allowing them to mitigate risks associated with currency fluctuations. The focus remains on enhancing customer satisfaction and expanding their customer base, key elements of the company’s six-pillar ‘win-with’ strategy.

Airtel Africa’s dedication to fostering financial inclusion and bridging the digital divide remains staunch. With a population in its markets predominantly aged between 10 and 24, the demand for data, mobile voice, and mobile money services continues to rise. 

Airtel Africa sees this as an opportunity to further serve its customers and provide essential services in some of the least penetrated telecoms markets globally, where only 48% of the population owns one or more SIM cards.

Glancing into the future, Airtel Africa will boost delivering affordable and reliable telecom and mobile money services across its markets. Despite challenges like rising diesel prices in Nigeria, the company aims to limit the impact through operational leverage and further cost efficiencies, intending to deliver an improved EBITDA margin in FY ’24 compared to FY ’23. 

Airtel Africa remains focused on its mission to connect people, enhance financial inclusion, and contribute to the economic development of the regions it serves.

While facing the headwinds of the FX market, Airtel Africa stands resilient, steering through challenges with strategic efficiency. The company’s ability to adapt and innovate in the face of adversity reflects its dedication to providing essential services even in the most challenging economic landscapes. 

Developed in collaboration with Wema Bank and Kadavra BDC, Swap is set to bolster the way Nigerians engage with foreign exchange. If you’re curious about this innovative offering, here are 10 key insights into what makes Swap unique:

1. Access to Foreign Exchange: Swap opens the door for Nigerians to access foreign currencies swiftly and conveniently. Whether you require US Dollars, British Pounds, or Euros, Swap provides a seamless solution.

2. Competitive Exchange Rates: Bid farewell to unfavorable exchange rates. The FX solution is designed to offer competitive rates, ensuring that you get the best value for your money when converting currencies.

3. Access to Multiple Currencies: Swap caters to your diverse currency needs. You can access not only USD but also GBP and Euros, expanding your financial possibilities.

4. Security and Regulatory Approval: Operated within a secure, reliable, and regulatory-approved environment, Swap guarantees the safety and legality of your currency exchange transactions.

5. 24/7 Accessibility: Say goodbye to the constraints of traditional banking hours. This product is accessible around the clock, providing you with the flexibility to manage your foreign exchange needs whenever it suits you.

6. Empowerment for All: Whether you’re an individual or a business entity, this product empowers you to take control of your foreign exchange requirements. It’s designed to cater to the unique needs of both personal and business users.

7. Streamlined Currency Exchange: The complexity of traditional currency exchange processes is a thing of the past with Swap. It simplifies the entire procedure, ensuring a user-friendly and efficient experience.

8. Central Bank of Nigeria (CBN) Backing: Swap enjoys the backing and approval of the Central Bank of Nigeria (CBN), reinforcing its status as a trustworthy and reliable digital platform for currency exchange within the country.

9. Convenient Card Issuance: Flutterwave is set to introduce a convenient card issuance system for Swap users. This feature will make it even more straightforward for Nigerians to access Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).

10. International Transactions Made Easy: Beyond simplifying foreign exchange, the product facilitates international transactions and investments. It opens doors to global opportunities and enables you to pursue your financial goals on a broader scale.

Flutterwave’s Swap is set to redefine the way Nigerians interact with foreign exchange. With its commitment to user-friendliness, competitive rates, and regulatory approval, it targets a transformed financial landscape. 

Accessing foreign exchange in Nigeria has been a persistent challenge, affecting individuals and businesses alike. Swap emerges as a timely solution to bridge this gap, offering immediate access to foreign currency at competitive exchange rates. This innovative platform aims to empower Nigerians, granting them greater financial freedom and opening doors to global opportunities.

Unlike conventional payment platforms, Swap is not just another payment solution—it’s a commitment to reimagine foreign currency exchange, with promises of accessibility, transparency, and cost-effectiveness in a secure, reliable, and regulatory-approved environment.

Key Highlights of Swap

User-Friendly Accessibility: Swap is designed with users in mind, offering an accessible and intuitive platform for both existing Flutterwave for Business and Send App users and newcomers. It eliminates the complexities associated with traditional foreign currency exchange processes, ensuring that anyone can easily navigate the platform. This accessibility empowers individuals and businesses to take control of their financial journey and exchange currency on their terms.

Currency Support: The product currently supports currency exchange from Nigerian Naira (NGN) to three major global currencies: United States Dollars (USD), British Pounds (GBP), and Euros (EUR). This broad currency coverage caters to a wide range of financial needs, from international travel expenses to cross-border business transactions. By facilitating exchanges in these key currencies, Swap opens up global opportunities to its users.

Central Bank of Nigeria (CBN) Approval: One of the defining features of Swap is its approval by the Central Bank of Nigeria (CBN). This regulatory backing ensures the platform’s adherence to high standards of security, efficiency, transparency, and service delivery. Users can have confidence in the reliability and legitimacy of Swap, knowing that it operates within the regulatory framework set by the apex payment regulatory body in Nigeria.

Collaborative Partnerships: The success of Swap is underpinned by strategic collaborations with industry leaders like Kadavra BDC and Wema Bank. These partners share a common vision of transforming the foreign exchange landscape in Nigeria, and their support is instrumental in realizing this vision. The partnerships with Kadavra BDC and Wema Bank bolster the platform’s capabilities and reach, enhancing the user experience and ensuring the platform’s widespread availability.

Financial Freedom: Swap goes beyond being a mere platform for currency exchange; it represents financial empowerment. By giving individuals and businesses direct access to foreign exchange for their short and long-term needs, Swap empowers them to seize global opportunities and embark on a journey of financial freedom. With Swap, traditional barriers to foreign exchange become a thing of the past, opening up a world of possibilities and a brighter financial future for its users.

Swift Access to Global Currencies: In addition to currency exchange, Swap will introduce a convenient card issuance system, distributing over 10 million cards to Nigerians starting from October 2023. These cards will enable quick access to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). This initiative is a boon for Nigerians seeking swift access to foreign currency for educational pursuits, business ventures, and diverse travel requirements. It ensures that Swap users have the tools they need to make the most of global opportunities.

Transformation of the FX Landscape: Flutterwave’s Swap promises to redefine the foreign exchange landscape in Nigeria. It represents a leap forward in addressing the challenges associated with accessing foreign currency. With its commitment to efficiency, security, and accessibility, Swap is set to transform the way Nigerians engage with foreign exchange. It stands as a testament to Flutterwave’s dedication to innovation and financial simplification, offering users a seamless, efficient, and secure platform for currency exchange. Swap empowers users to access global opportunities, ultimately fostering financial growth and freedom.

Speaking at the launch, Olugbenga ‘GB’ Agboola, Flutterwave’s CEO said:

“In our relentless pursuit of innovation and financial simplicity, Swap represents a significant leap forward in addressing FX access challenges. We understand the pain points faced by individuals and businesses, and Swap is our answer—an efficient, seamless, and secure currency exchange platform. We are honored to have the trust of our partners Kadavra BDC and Wema Bank and regulatory approval to bring this transformative solution to Nigerians.“

Key partners Kadavra BDC and Wema Bank are equally enthusiastic about the transformative potential of Swap. Cynthia Onyinyechi, CEO of Kadavra BDC, describes Swap as “a step in the right direction for solving major FX problems for Nigerians.” Moruf Oseni, Managing Director of Wema Bank, reiterated their commitment to digital innovation, believing Swap will have a significant impact across all sectors.

Flutterwave Swap will grant Nigerians and businesses the financial freedom and control they deserve.

Flutterwave is a payments technology company that facilitates cross-border transactions through one API, enabling businesses worldwide to expand their operations into Africa and emerging markets. To date, Flutterwave has processed over 550 million transactions worth more than $32 billion, serving over 2 million businesses, including renowned brands like Uber, Flywire, and Booking.com. 

The fintech’s competitive advantage lies in its international payment processing capabilities, covering 150 currencies and multiple payment modes, including local and international cards, mobile wallets, bank transfers, and Barter by Flutterwave. With an infrastructure presence in over 34 African countries, including Nigeria, Uganda, Kenya, and South Africa, Flutterwave continues to be at the forefront of payment innovation.