USD-backed stablecoins fuel Nigeria’s trade amid FX uncertainty

With the naira stabilising in recent weeks, Nigerian businesses increasingly rely on USD-backed stablecoins to hedge currency risk and maintain trade continuity.

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 ...