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?”
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.
Mr Taiwo Oyedele, minister of Finance and Coordinating Minister of the Economy, has warned that fear, rumours and misinformation could trigger instability in the banking sector if not properly managed.
Mr Taiwo Oyedele, minister of Finance and Coordinating Minister of the Economy
Oyedele gave the warning in Abuja at the 2026 International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Annual Meeting and Workshop, with the theme: “Safeguarding Stability: Public Awareness and Crisis Readiness for a Stronger Future.”
The minister said public confidence remained the foundation of every stable financial system, stressing that panic triggered by false information could create liquidity challenges even for financially sound institutions.
According to him, “there can be no economic growth without financial system stability, and there can be no financial stability without public trust.”
He explained that in the digital age, misinformation could spread rapidly across social media platforms, causing depositors to react out of fear.
“Public trust is fragile. In the digital age, rumours and misinformation can spread across social platforms in seconds, creating liquidity shocks even for solvent institutions,” Oyedele said.
He stressed that building public awareness should not be viewed as a public relations activity, but as a key risk management strategy capable of protecting depositors and strengthening the financial system.
Oyedele noted that deposit insurance had evolved beyond a mechanism for handling bank failures, describing it as a strategic tool for promoting confidence and economic stability.
He said effective crisis preparedness required clear frameworks, communication channels, simulation exercises and coordination among financial sector regulators before emergencies occur.
“Preparedness is not an event, it is a culture,” he said, adding that the strongest crisis response was one that prevented panic from occurring in the first place.
Highlighting Nigeria’s financial sector reforms, the minister said the country’s banking recapitalisation exercise, concluded in March 2026, strengthened the resilience of banks.
He disclosed that 33 out of Nigeria’s 37 banks met the new capital requirements, raising a combined N4.65 trillion in fresh capital, with over 70 per cent sourced from domestic investors.
Oyedele said a better-capitalised banking system would be better positioned to absorb shocks, sustain lending and reduce pressure on the deposit insurance fund.
He also pointed to Nigeria’s removal from the Financial Action Task Force (FATF) grey list in October 2025 as another milestone that strengthened confidence in the country’s financial system.
Also speaking, Mr Olayemi Cardoso, governor, Central Bank of Nigeria (CBN), said public awareness and crisis preparedness were central to maintaining financial stability.
Represented by Solaja Olayemi, director, Other Financial Institutions Supervision Department represented, Cardoso said financial systems globally were undergoing rapid transformation due to technological innovation, digital finance, changing consumer behaviour and increasing market interconnectedness.
According to him, while these developments create opportunities, they also introduce new risks that require stronger cooperation among financial safety-net institutions.
The CBN boss warned that misinformation could spread quickly through digital channels, amplifying depositor reactions and creating potential threats to financial stability.
He added that institutions must continuously strengthen crisis management frameworks, operational resilience and coordination mechanisms to respond effectively to emerging challenges.
The apex bank governor also highlighted the impact of Nigeria’s banking sector recapitalisation policy, saying stronger capital buffers would reduce the likelihood of bank failures and reinforce depositor confidence.
“No single institution can safeguard financial stability in isolation. It is through the coherence and complementarity of this institutional relationship that Nigeria’s financial safety net derives its strength,” he noted.
Earlier, Mr Thompson Sunday, managing director/chief executive officer, Nigeria Deposit Insurance Corporation (NDIC), said confidence remained the most valuable asset in any financial system.
The NDIC boss said trust could take years to build but could be lost quickly if stakeholders perceived uncertainty or instability. He said deposit insurers must ensure that the public understands and trusts existing protection frameworks during both normal periods and times of crisis.
He noted that the 2023 global banking turmoil highlighted the need for institutions to invest in crisis simulation exercises, contingency planning and effective communication strategies.
According to him, the NDIC has continued to strengthen its operational readiness through improved depositor reimbursement systems, public awareness initiatives and enhanced crisis management capabilities.
European Union (EU) has warned the public against a fraudulent document circulating online which falsely claims that the bloc, in collaboration with the World Bank, is offering compensation to individuals whose funds are allegedly trapped in banks and financial institutions across West Africa.
In a statement issued on Wednesday in Abuja, the EU Delegation to Nigeria and ECOWAS described the purported compensation programme as a scam, stressing that neither the European Union nor the World Bank is involved in any such initiative.
The fake document, fraudulently attributed to Thérèse Blanchet, secretary-general of the Council of the European Union, claimed that a special EU-World Bank recovery programme has been established to compensate citizens of Europe and other countries whose legally transferred funds were allegedly withheld by banks in the region.
It also falsely stated that the EU Ambassador to Nigeria and ECOWAS has been mandated to supervise the compensation exercise and directs potential claimants to contact him for processing.
However, the EU categorically dismissed the claims, describing every aspect of the document as fabricated.
“The document in its entirety is a scam. The information and claims contained therein are false. The European Union is neither aware of any such bogus programme nor part of it,” the Delegation stated.
The EU further disclosed that the email addresses and telephone numbers listed in the fraudulent document, purportedly belonging to Ms. Blanchet and Ambassador Gautier Mignot, EU Ambassador to Nigeria and ECOWAS, , are fake and are being used by fraudsters to deceive unsuspecting victims.
The Delegation urged members of the public to ignore the fraudulent claims and avoid engaging with anyone promoting the scheme.
It emphasized that all official announcements from the European Union Delegation to Nigeria and ECOWAS are published exclusively through its official website and verified social media platforms.
The warning comes amid increasing cases of cyber-enabled financial fraud in which criminal syndicates impersonate international organisations, government institutions and senior officials to lure victims into paying fictitious processing fees or divulging sensitive personal and financial information.
The EU reiterated its commitment to combating fraud and misinformation while urging citizens to remain vigilant against scams exploiting the names and identities of reputable international institutions.
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