Recent geopolitical tensions in the Gulf have created shockwaves in global markets, and Nigeria has not been spared. In the early days of the conflict, the naira briefly jumped from ₦1360 to ₦1400.
While the naira has shown signs of stabilisation over the past few days, ongoing uncertainty continues to influence cross-border payments, import costs, and economic recovery. For businesses and investors navigating this volatility, the ability to move funds efficiently across borders has become more critical than ever.
Fintech solutions, including cross-border payment platforms and alternative rails such as USD-backed stablecoins, are increasingly playing a role in mitigating FX risk and ensuring continuity of trade.
In this interview, Ola Oyetayo, CEO of Verto, discusses how foreign capital flows are shaping Nigeria’s currency and bond markets, the role of central bank interventions in maintaining stability, and how technology and fintech solutions are helping businesses manage cross-border payments amid a volatile global environment.
How has the recent volatility in the naira affected the ability of payment providers to source dollars for cross-border transactions?
It’s become a game of agility. When the naira is volatile, the liquidity pool doesn’t just dry up; it becomes incredibly fragmented. Traditional sourcing becomes a bottleneck because everyone from tier 1 banks to local corporates starts hoarding greenbacks to hedge against further slides.
For payment providers, this means we can no longer rely on a single tap. We have to be much more sophisticated in how we pool liquidity, leveraging a mix of local partnerships and global treasury management to ensure our clients aren’t left stranded when the market gets choppy.
When the naira moves 5% or 10% in a matter of days, the risk premium inevitably rises. Most providers will widen their spreads, but it’s not out of opportunism; it’s a defensive manoeuvre. When this happens, we have to account for the “slippage” between the moment a customer initiates the transfer and the moment we actually settle that trade in the global market.
At Verto, we lean into technology to keep these spreads as tight as possible, but during high-volatility windows, pricing becomes more dynamic. You’ll see more frequent updates — sometimes minute-by-minute — to reflect the real-time cost of sourcing.
How has recent currency instability impacted the speed and cost of cross-border payments for Nigerian businesses?
Businesses are definitely feeling the pinch, and it’s hitting them in two specific ways. Firstly, it’s that the dollar is unpredictable. If you’re a manufacturer importing raw materials, you can’t price your goods if you don’t know what your replacement cost will be next week. This means retailers, manufacturers, etc., price higher to avoid surprises.
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Secondly, while fintechs like us have sped things up, the broader ecosystem still faces occasional hiccups. Higher costs are the new normal, and businesses are now prioritising speed of execution over almost everything else to avoid getting caught in a sudden devaluation.
Do episodes of FX volatility tend to accelerate the use of alternative payment rails, such as stablecoins or cryptocurrencies, for international transfers? Are we seeing that now?
Volatility is the ultimate catalyst for “unconventional” finance. When the traditional banking system has a $7 billion backlog (as we saw in 2024), businesses don’t just stop trading. Instead, they look for the path of least resistance.
At the moment, we are seeing a massive acceleration in the use of USD-backed stablecoins (like USDT and USDC). For a Nigerian importer, holding value in a digital dollar is a no-brainer. It’s a hedge against the naira’s slide, and, more importantly, it offers instant settlement. Currently, we’re seeing legitimate B2B trade moving through alternative rails. In fact, stablecoins now account for a huge chunk of transaction volume in the region.
What practical strategies are Nigerian businesses using today to manage cross-border payment risks?
Nigerian entrepreneurs are some of the most resilient in the world. Historically volatile currencies and uncertainty enable them to adapt in crisis. They have moved past panic and into process.
Businesses are no longer keeping all their eggs in a naira basket. They use platforms like Verto to maintain wallets in USD, GBP, or EUR, converting only what they need for immediate local opex.
Dynamic pricing is commonplace. I’ve seen retailers update their price tags daily (sometimes twice a day), linked to the real-time FX rate. It’s the only way to protect their margins from being eaten by inflation.
Larger firms are also getting clever with netting. If a company has both export receivables and import payables, they settle them against each other internally to minimise their exposure to the FX market altogether.
How important are interventions by the Central Bank of Nigeria in maintaining liquidity for international payments and trade settlement?
The CBN’s interventions are critical, but the nature of those interventions has changed significantly under the current leadership.
In early 2025, the CBN massively ramped up interventions (by over 200%) to flush the market with dollars during peak demand periods. This “shock and awe” approach helps dampen the wilder swings of volatility.
The most important thing they’ve done isn’t just selling dollars; it’s clearing the backlogs and launching systems like the Electronic Foreign Exchange Matching System (EFEMS).
For years, the $7 billion FX backlog was like a dark cloud over Nigeria. If you were a foreign investor, you were hesitant to bring money in because you weren’t sure you could get it back out.
By clearing that backlog, the CBN essentially told the world, “We honour our debts.” We’ve seen the impact immediately: foreign capital inflows surged to over $20 billion in the first ten months of 2025 alone. That’s a 400% jump from 2023.
Similarly, before EFEMS, FX trading was opaque. If you knew the right person at a bank, you got a better rate. EFEMS changed the game by creating a digital, transparent matching system.
This transparency has significantly squeezed the gap between the official and parallel rates. When there’s only one real price, it’s much harder for speculators to manipulate the market for a quick profit.
EFEMs also means that settlement speeds increased. For businesses, this means less dead time where capital is trapped in limbo. You can trade, settle, and move on to your next business goal without looking over your shoulder.
Without the CBN providing those baseline liquidity and regulatory guardrails, the market would descend into speculative chaos. They provide the floor, but the goal is for the market — banks, fintechs, and corporates — to eventually provide the walls and ceiling through transparent, market-driven trade.
