E-Financial
Nigerians Fear Political Crisis, Dump Naira for Dollars, Pounds
Nigerians are dumping the naira currency as it skids lower by the day, driven by fear of the unknown after authorities pushed back the date of a presidential election.
They are reportedly buying up dollars, pounds sterling as well as other major foreign currencies while wealthy elite looks at property abroad, according to Reuters.
The report claimed that, already mauled by a halving of oil prices since last June, the naira this week fell through the key level of 200 to the dollar, forcing people like Boyin Akinteye to seek ways of protecting their savings.
In the up-market Dunes shopping mall in the capital Abuja, the freelance gift designer and mother of two young children was buying dollars and moving them into her Bank of America account in the United States.
“The naira’s way down,” she said. “We’re uncertain when or where it’s going to end so my husband and I, we took action.”
When Attahiru Jega, electoral commission chairman revealed on Saturday that national security chiefs had urged him to delay the poll by six weeks to March 28, it reminded many of the cancellation of a 1993 election by the military government then in power. Some wonder if the vote will take place at all.
Nigerian author Chimamanda Ngozi Adichie wrote in an editorial that “it has cast, at least for the next six weeks, the darkest possible shroud over our democracy: uncertainty.”
That uncertainty has already sent foreign portfolio investors scurrying for the exit. But for Nigerians that exit is not always easy to find.
Wiring money abroad is difficult as the central bank caps transfers at $10,000 a day and other countries often ask for proof of how the money was earned and taxed, said a wealthy Lagos-based businessman who asked not to be named.
Since a lot of the big bucks in Nigeria are earned in shady or corrupt business deals, using shell companies to avoid tax, such proof can be hard to produce.
Spot checks on Nigerians at airports mean smuggling cash out in a suitcase is not an option, the businessman added.
While some middle-class Nigerians keep dollars in onshore accounts, he said he and his friends were worried about the risk of capital controls that could limit withdrawals later. Some, he said, were taking their dollars out now and stuffing them under the mattress.
MARKET ALARM
Despite a call for calm by Central Bank Governor Godwin Emefiele, the markets are jittery: foreign exchange dealers suspended electronic trading in two consecutive sessions on Wednesday and Thursday because of the pace of the naira’s fall.
The currency is already over 20 percent weaker than the central bank’s target rate of 168 to the dollar, and black market traders are selling for around 210.
Rates on derivatives contracts suggest the naira could fall another 30 percent in the next 12 months.
One well-connected member of the elite, who declined to be named, said friends were looking at property in London, Dubai and the United States. Dubai is favoured since authorities ask fewer questions about where the money came from, he said.
Nasser Mohammed, the chief executive of a small oil and gas firm, is holding much of his savings in dollars and pounds, while opting not to repatriate cash from operations in London.
“The only way to save your money right now is to keep it in dollars or pounds. Otherwise, it’s going to vanish,” he said, tucking into a roast chicken lunch at an Abuja restaurant.
The head of strategy at one bank said he was approached by a customer with 3 billion naira ($14.7 million) who wanted to hold some of it in dollars. He advised her against it in case the naira stabilises and she loses out, especially with a wide spread and high bank charges.
The central bank last devalued the currency in November but a further devaluation has already been priced in, he said. On Thursday the bank said it had burned through $1 billion in nine trading sessions in its efforts to defend the naira.
Foreign companies with earnings in local currency are likely to take a hit, although most try to hedge against currency declines by recycling naira locally.
Soap maker PZ Cussons told Reuters: “While there is uncertainty surrounding the election, PZ Cussons remains confident about the medium- and long-term opportunities.”
Diageo, for whom Nigeria is the biggest market for Guinness stout, declined to comment.
Many Nigerians are greeting uncertainty, as they often do, with a fatalistic shrug of the shoulders.
“The rich guys are moving money out but I earn in naira, so I’m keeping it in naira,” said construction engineer Michael Akinyemi. “What’s the point unless you’re fleeing the country?”
Sterling Bank, in partnership with nonprofit Water.org and Sterling One Foundation, has launched the Sterling WASH Business Loan to empower WASH businesses and scale sustainable access to safe water and sanitation for millions of Nigerians.
L-R: Gilbert Okpono, Snr. Partnership Account Manager, Water.org; Engr. Mukhtaar Temitope Tijani, Managing Director, Lagos State Water Corporation; Mrs. Olapeju Ibekwe, CEO, Sterling One Foundation; Akporee Idenedo, Divisional Head Commercial Banking, Sterling Bank, at the Sterling Bank Water Credit Proposition held in Lagos recently.
The catalytic financing solution addresses daily struggles with clean water and safe sanitation, which impact health, livelihoods, and well-being, while strengthening delivery systems for WASH solutions.
Launched on Monday, November 24, 2025, at The Wheatbaker Hotel, Ikoyi, Lagos, the initiative signals a shared commitment to tackling one of Nigeria’s most pressing development challenges.
Abubakar Suleiman, Managing Director of Sterling Bank, said sustainable development hinges on collaboration and targeted investment in frontline businesses and people.
“By providing accessible financing to entrepreneurs in this critical social sector, we ensure progress reaches communities that need it most. This product aligns with our HEART strategy and commitment to improving quality of life through impact-driven initiatives,” Suleiman stated.
Gilbert Okpono, Nigeria Senior Partnership Account Manager at Water.org, stressed the transformative power of financing WASH businesses.
“Financial inclusion is critical to solving the global water and sanitation crisis. By expanding access to affordable financing, we enable households and WASH entrepreneurs to improve services, reach more communities, and transform lives,” Okpono said.
He added that the partnership reflects a belief in rippling benefits across health, education, and economic opportunity, marking a major step toward sustainable scaling.
The loan supports WASH entrepreneurs, small business owners, and community service providers with flexible financing to expand operations, boost health, livelihoods, and educational outcomes.
Olapeju Ibekwe, CEO of Sterling One Foundation, linked the initiative to the foundation’s mission of catalysing lasting social impact across Africa.
“Our Foundation catalyses initiatives that deliver real, lasting change. Access to safe water and sanitation is one of the most powerful investments in community well-being. We are proud to partner with Water.org and Sterling Bank for inclusive, scalable, and sustainable solutions,” Ibekwe affirmed.
The launch event gathered development partners, WASH entrepreneurs, media, policymakers, and community organisations to discuss coordinated financing, supportive policies, and market-driven solutions to close Nigeria’s WASH access gap.
Interested beneficiaries can visit the initiative’s website for more details.
Access Holdings Plc has received the approval of its shareholders to raise additional capital of up to N40 billion or such other amount or their equivalent in foreign currencies, via private placement.
The shareholders gave the approval as part of the special resolutions at Access Holdings Plc Extraordinary General Meeting (EGM) held on Thursday December 18.
In a notice to the Nigerian Exchange Limited (NGX), Access Holdings said the new ordinary shares created in connection with the private placement, will be allotted at a price of N20.25 to one or more investors in such tranches and on such terms and conditions as shall be determined by the Board.
Access Holdings Plc Board of Directors is authorised to consider, negotiate, approve, and finalise the list of potential private placement investors; determine the structure, valuation, modalities, and timeline for the private placement.
The Board was also authorised to consider, negotiate, approve and finalise the list of potential private placement investors; determine the structure, valuation, modalities and timeline for the private placement.
The shareholders also approved for the issued share capital of Access Holdings Plc to be increased from N26 658 billion to N27.646 billion by the creation and addition of 1,975,308,641 ordinary shares of 50 kobo each ranking pari-passu with the existing ordinary shares of the Company.
Nigeria Customs Service (NCS) has imposed a three per cent surcharge on Deposit Money Banks (DMBs) over delays in the remittance of Customs revenue by designated banks.
The development was disclosed by Abdullahi Maiwada, national public relations officer of the Service, in a statement titled “Nigeria Customs Service Commences Enforcement of Penalties Against Designated Banks for Delayed Remittance of Customs Revenue.”
The agency stated that delays in remitting collected Customs revenue constitute a breach of remittance obligations and negatively impact the efficiency, transparency and integrity of government revenue administration.
Maiwada explained that any Designated Bank that fails to remit collected Customs revenue within the prescribed period will be liable to penalty interest, adding that affected banks will receive formal notifications detailing the delayed amount, applicable penalty and the timeline for settlement.
“The NCS has noted instances of delayed remittance of Customs revenue by some Designated Banks following reconciliation of collections processed through the B’Odogwu platform. Such delays constitute a breach of remittance obligations and negatively impact the efficiency, transparency and integrity of government revenue administration.
“In line with the provisions of the Service Level Agreement (SLA) executed between the Nigeria Customs Service and Designated Banks, the Service hereby notifies stakeholders of the commencement of enforcement actions against banks found to be in default of agreed remittance timelines.
“Accordingly, any Designated Bank that fails to remit collected Customs revenue within the prescribed period shall be liable to penalty interest calculated at three per cent above the prevailing Nigerian Interbank Offered Rate for the duration of the delay. Affected banks will receive formal notifications indicating the delayed amount, applicable penalty and the timeline for settlement.”
Maiwada further advised Designated Banks to strengthen their internal controls, ensure strict adherence to remittance timelines and comply fully with the provisions of the SLA.
He reiterated that the Service remains committed to enforcing accountability, safeguarding government revenue and promoting a transparent and predictable financial system in support of national economic development.
“The Service further notes that persistent or repeated non-compliance with the terms of the SLA may attract additional sanctions, including regulatory and administrative measures, as provided under the Agreement and relevant laws guiding Customs revenue collection.
“The NCS reiterates that prompt, accurate and complete remittance of Customs revenue is a fundamental obligation of Designated Banks. Any payment of collected revenue into unauthorised accounts, whether deliberate or erroneous, will be treated as a serious violation and addressed in accordance with the SLA and applicable legal frameworks.
“Designated Banks are therefore advised to strengthen internal controls, ensure strict adherence to remittance timelines and comply fully with the provisions of the SLA. The Service remains committed to enforcing accountability, safeguarding government revenue and promoting a transparent and predictable financial system in support of national economic development,” he added.
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