E-Financial
Impact of Free-Falling Naira on Technological Development in Nigeria
The continuous slide of the Naira, the Nigeria currency, to less than 50% of its value since April 2015 is spelling serious technological development concerns and consequence for Nigeria.
It is such a worrying moment for businesses, technology and technology firms operating in Nigeria.
Although many Economists and Financial Analysts have, from their various academic perspectives, debated the effects and impact of the free-falling currency on the country as a whole, it appears very few have given much consideration to the enormous loss of Naira power and the dire consequence on Nigeria’s technological development.
The treacherous slippage of the currency down the slope and alleyway of technology stagnancy or backwardness is to state mildly the resulting disaster or catastrophe that awaits technology stakeholders at all levels of the economy.
The issue, if not checked in time, may exacerbate and further send the country backwards from what is already an ‘eggshell’ fragile technology development onto a banana skin retrogression which could make other nations leave Nigeria further way behind.
The precarious state of the Nigeria economy in the recent months, which many commentators attribute to be the aftermath of maladministration of past administrations, is almost unprecedented.
The free-fall of the Naira has definitely surpassed the currency devaluation shocks of the late 1980s – 2010 which fuelled the exodus of thousands of young, intelligent and enterprising human resources in droves for better lives, new hope and new beginnings to the Western world.
In between the ‘mass exodus’ of the last two to three decades, the world has witnessed the advent, rise and boom of the internet technology which had turned out to be a blessing to a large number of Nigerians in diaspora who seized the opportunity to retrain into new careers in IT.
Over the last two decades, Nigerians living in the West have become one of the best sets of people that have great technology expertise, second only to Asians.
While many Nigerian technology experts and professionals in diaspora have done very well for themselves and for their adopted countries, most were no longer contemplating return to motherland until about 5 years ago when the country began to open its doors for their return through the attraction of fairly stable exchange rate and business’ willingness to pay fairly decent wages in return for the expertise provided which made returning return home a bit more attractive.
The availability of such indigenous experts in the country, no doubt, amplified implementation and technology delivery success rates which were the values they gave in return. To a large degree, businesses, local resources and Nigeria as a whole benefited from the arrangement that saw indigenous professionals back into the country.
No doubt Nigeria has made more strides in the technology space in the last 5 years than the previous 15 years, largely due to the ‘Returnees’ coming back home with cutting edge skills, knowledge and enhanced work ethics, which to a large extent was made easier by the equilibrium struck between knowledge and reward.
However, this stability is now being threatened by the disruption that has been rocking Naira since last year, 2015.
Recent decisions made by the government to stem the foreign exchange outflow from the economy, reduced crude oil prices and the alleged misappropriation of funds are few of the many factors causing unwillingness of technology professionals to return to Nigeria in the recent months. And, where they are willing to come to Nigeria, they are asking for 200%+ of the usual 2015 earnings and in many cases demand to be paid in foreign currencies, which employers are finding harder to come by.
Arguably, the economic cycle in which Nigeria finds herself has yielded more cons than pros such that business and technology development have been slowed down considerably as the exchange rate saga plays out.
More and more technology professionals are returning to Europe and America to ply their trade as the loss of Naira value is no longer justifying their stay in the country nor able to maintain their life styles. In a number of cases, many of them have immediate families living abroad and therefore have foreign exchange commitments which cannot be met on their current Naira income.
For example, a technology professional engaged in April 2015 when the rate was $1: N150 is now effectively earning half of the wage in 2016 when unofficial rate from banks is $1: N320. With mortgage, education and other commitment abroad, the professional may be left with no option but contemplate a return to a place where s/he can meet her/his obligations.
Unfortunately, ‘home coming’ dream of many technology professionals willing to make a difference is being put on hold, rather the ones that came in earlier are returning to their adopted countries, just as it was in the 1990s and early 2000s.
Needless to say that recruiting technology professionals from Europe or USA in the last 12 months has been painful and almost impossible or where this has been achievable, the brave or selfless professionals recruited are easily getting distracted and saddened at the rate at which their agreed remuneration gets eroded by the fall in Naira value. It is getting to a stage where most are requesting their employers to hedge their income against stable currencies, but the conundrum is that most employers do not seem to have foreign exchange to pay the professionals for their services unless they turn to the black market.
Delivering technology is becoming more challenging and very expensive once again as skilled technologists are becoming rarer in Nigeria, by the day. Even the local resources that were shadow-learning or understudying ‘Returnees’ are beginning to find their out of the country for pastures anew.
is a new level of attrition amongst technology personnel, especially those with less than 5 years of experience, most of whom either find ways to travel overseas or hop to another local employer to double their earnings.
Yes, many are beginning to head for the exit door, driven with the fear of tomorrow and focus on themselves as against the bigger picture, the development of Nigeria.
But can anyone blame them? The biggest winners in the technology/currency quagmire are the Western countries who open their doors to skillful Nigerians and provide them with the platform and reward for greater productivity in their countries. And the biggest loser is Nigeria. Certainly, Nigeria need these experts to develop her potentials.
Michael Ogunjobi is Senior Manager at Accenture
ChatPay has launched Africa’s conversational banking platform, enabling individuals and businesses to access financial services through WhatsApp.
The Lagos-based fintech startup, is in controlled rollout, connecting WhatsApp to linked-bank management, airtime and supported electricity payments through simple conversations.
The company said the platform is designed to enable users to send money, pay bills, buy airtime and manage business transactions within WhatsApp conversations, subject to the completion of regulatory approvals and integration with licensed banking partners.
According to ChatPay, the platform is operated by CP Technology Limited and is currently undergoing a phased rollout ahead of its planned public launch.
The company said the initiative is intended to simplify access to financial services by leveraging WhatsApp, which it estimates is used by more than 50 million Nigerians monthly.
Speaking on the idea behind the platform, Adeoluwasubomi Odebunmi, product lead and co-founder, said the concept emerged while she was studying Software Engineering at Babcock University.
“I saw the gap while I was still in school—how much friction there was just to move money. I didn’t want to just study the problem. I wanted to help fix it,” she said.
Odebunmi said she had previously worked on software solutions spanning e-commerce, real estate management, school administration and artificial intelligence applications before co-founding ChatPay.
Aseoluwa Siyanbola, growth lead and co-founder, said his experience managing Nigerian bank accounts while studying abroad highlighted some of the challenges users face with digital banking services.
According to him, difficulties such as one-time password (OTP) failures and inconsistent banking applications inspired the team to explore conversational banking solutions.
“We each encountered similar challenges and came together to build a solution that simplifies everyday financial transactions,” he said.
cAbraham William, tech lead and co-founder, said the company is focused on improving access to financial services through a platform that many Nigerians already use daily.
“We want to make financial services easier to access by allowing people to carry out transactions through a familiar messaging platform,” he said.
William said he oversees the company’s engineering, technology strategy and system architecture.
ChatPay said its services will be introduced in phases as regulatory requirements are met and integrations with banking partners are completed.
The company added that its newly launched “Founding 2,500” programme will enable selected early users to test features, provide feedback and participate in product development before the platform’s wider rollout.
According to the company, interested users can register for the waitlist and the Founding 2,500 programme through its website.
Founded by Odebunmi, Siyanbola and William, ChatPay said its long-term goal is to expand conversational banking services beyond Nigeria into other African markets after its domestic rollout.
United Bank for Africa (UBA) Plc has been named Nigeria’s Best Bank for Retail Banking and Best Bank for Sustainability Leadership (ESG) at the 2026 Euromoney Awards for Excellence, reinforcing its position as one of Africa’s leading financial institutions.
The awards were presented on July 17 at The Peninsula London in the United Kingdom, recognising financial institutions that have demonstrated outstanding performance, innovation, customer impact and sustainable banking practices.
The double recognition highlights UBA’s growing influence in retail banking and its commitment to advancing environmental, social and governance (ESG) principles across its operations.
According to Euromoney, UBA distinguished itself through a series of sustainability initiatives, including the introduction of a Green Financing Facility designed to support households and businesses transitioning to renewable energy.
The publication also cited the bank’s ₦5 billion financing programme, implemented in partnership with the Bank of Industry (BOI), to provide funding for women-owned businesses.
Euromoney further recognised UBA’s commitment to achieving net-zero carbon emissions by 2050, describing it as a demonstration of the bank’s long-term sustainability strategy.
The publication also highlighted the bank’s efforts to integrate sustainability into its operations through the deployment of solar-powered energy solutions across 50 branches and comprehensive ESG capacity-building programmes that have trained more than 16,000 employees across the UBA Group.
In the retail banking category, Euromoney noted that UBA continued to consolidate its position as one of Africa’s largest retail banking institutions.
According to the publication, the bank expanded its customer base to more than 37 million by the end of 2025, while retail banking revenue increased more than fourfold to ₦429.5 billion.
The awards also recognised UBA’s continued investment in digital banking innovation, particularly enhancements to its artificial intelligence-powered chatbot, LEO.
Euromoney noted that LEO became Africa’s first AI-powered banking platform to facilitate cross-border money transfers in local currencies through the Pan-African Payment and Settlement System (PAPSS).
Commenting on the awards, UBA’s Group Managing Director and Chief Executive Officer, Mr Oliver Alawuba, described the recognition as a validation of the bank’s commitment to delivering value to customers while promoting sustainable development across Africa.
“To be recognised as Nigeria’s Best Bank for both ESG and Retail Banking in the same year sends a powerful message that sustainable banking and commercial success are mutually reinforcing.
“At UBA, we are committed to financing Africa’s future, supporting businesses and communities, promoting financial inclusion, and delivering innovative banking solutions that improve lives.
“These awards belong to our customers for their confidence in us and to every member of the UBA family whose dedication continues to make our vision a reality,” he said.
Also speaking, UBA’s Group Head, Marketing, Brand and Corporate Communications, Mrs Alero Ladipo, said the awards reflected the bank’s unwavering commitment to putting customers at the centre of its operations.
According to her, every innovation, investment and banking solution introduced by UBA is aimed at creating exceptional value for customers while expanding access to financial services.
“These awards are a powerful affirmation of our Customer First philosophy.
“Whether it is supporting entrepreneurs with access to finance, enabling seamless digital payments, advancing clean energy financing or expanding financial inclusion across Africa, UBA remains focused on delivering meaningful impact.
“We are honoured that one of the world’s most respected financial publications has recognised these efforts,” she said.
UBA currently operates in 20 African countries, as well as the United Kingdom, United States, France and the United Arab Emirates, serving more than 45 million customers through a combination of digital banking platforms and physical branch networks.
The bank said it remains committed to strengthening financial inclusion, driving innovation and supporting sustainable economic development across Africa and beyond.
Nigeria Deposit Insurance Corporation (NDIC) has begun paying insured deposits to customers of the 46 recently failed microfinance banks.
Mr Thompson Sunday, managing director and chief executive, NDIC, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja.
The interview took place on the sidelines of the International Association of Deposit Insurers Africa Regional Committee meeting.
Sunday said the corporation was using the Nigeria Inter-Bank Settlement System (NIBBS) and customers’ Bank Verification Numbers (BVN) for the payments.
He said the NDIC had traced depositors’ alternative bank accounts and credited them directly without requiring physical visits.
He advised depositors without BVNs to visit the nearest NDIC zonal office for verification and payment processing
“The CBN revoked the licences of the 46 microfinance banks on July 1, 2026,” he said.
He said the NDIC automatically became the provisional liquidator after the revocation, in line with the law.
Sunday said the corporation had commenced payment of the insured maximum deposit of N2 million to eligible customers.
He explained that further payments would depend on the recovery of the failed banks’ assets and outstanding debts.
He said proceeds realised from recoveries would be distributed as liquidation dividends to eligible depositors.
Sunday cited Heritage Bank, Aso Savings and Union Homes as examples of the NDIC’s prompt reimbursement efforts.
He said insured depositors of Heritage Bank were paid within four days of the revocation of its licence.
He added that customers of Aso Savings and Union Homes received payments within 72 hours.
“The law allows us 30 days, but we are working to surpass our previous records,” he said.
The Central Bank of Nigeria (CBN) revoked the banks’ licences for failing to meet regulatory requirements for continued operations.
The apex bank said the action was aimed at protecting depositors, strengthening financial stability and ensuring regulatory compliance.
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