Travelex, a market leading travel money provider servicing the entire value chain of global foreign exchange is set to deepen its wholesale banknote operations in Nigeria as signs of stability return to Africa’s fourth largest economy
Adam Kettle, Travelex’s wholesale banknote director for the UK and Africa, says Nigeria remains central to the company’s African operations despite a recent slowdown in trading. Speaking with Business A.M.’s BAMIDELE FAMOOFO and ONOME AMUGE, Kettle credited Travelex’s long-serving Nigerian team for sustaining relationships and ensuring compliance with the Central Bank’s strict regulatory standards. He described Africa as a resilient and vital market, driven by consistent demand for physical currency, particularly the US dollar. While noting that Africa remains heavily dollarised, Kettle contrasted it with Asia, where stronger local currencies such as the baht, yuan and Hong Kong dollar dominate. He said Travelex’s focus remains on operational excellence and long-term partnerships across the continent. EXCERPTS:
Can you describe Travelex’s current footprint in Nigeria’s foreign exchange market and what expansion plans you’re considering?
Travelex has a long history in Nigeria that dates back to when Thomas Cook first operated here. Travelex acquired Thomas Cook’s foreign exchange business about 40 years ago and has maintained a presence since.
Currently, we operate two entities in Nigeria. The first is our old retail business, which is now dormant. We used to run retail stores in airports, but COVID-19 forced us to reassess that business. You need a Bureau de Change (BDC) licence for that activity, and with the Central Bank of Nigeria’s ongoing reforms and capital requirements, we decided to exit those airport contracts and mothball the operations.
The second entity is our representative office for the banknote business. This is part of our global wholesale operation, which services central and commercial banks with their banknote requirements. Out of the UK, we trade with 22 African countries, and Nigeria has historically been one of our largest markets in terms of volume.
Our team in Nigeria—three or four staff—facilitates the import and export of banknotes and manages relationships with partners such as the Central Bank of Nigeria and local commercial banks. While the market has been quiet recently due to economic challenges—high interest rates, naira devaluation, and central bank restructuring—we’re beginning to see signs of recovery as the economy stabilizes.
How does Travelex ensure transparency and efficiency in the wholesale currency distribution market in Nigeria?
Our obligation is primarily to the Central Bank of Nigeria and our partner banks. We provide a door-to-door service—from our vault in London to a designated vault in Nigeria, often in Lagos or Abuja.
We have a highly experienced shipping and logistics team that manages large-scale banknote movements through relationships with major airlines like British Airways, Virgin Atlantic, and Kenya Airways. This allows us to move funds quickly and securely.
Transparency is critical. We’re regulated both in the UK and Nigeria. Every shipment is cleared through the proper channels, with full regulatory compliance, documentation, and customs approval. In the UK, we undergo rigorous due diligence on our customers and transactions to meet our regulators’ standards.
What kind of infrastructure or institutional support do you think would make Nigeria stronger for forex operations in Africa?
Regulation is key. From what I’ve observed, Nigeria’s regulatory environment is robust. The Central Bank is stringent, as it should be, in overseeing currency movements and transparency. I don’t think there’s anything Nigeria needs to change drastically—it’s more about maintaining stability and consistent policy.
Economic factors like oil prices, inflation, and consumer spending cycles affect every country differently. Nigeria is no exception. The fundamentals—regulation, infrastructure, and compliance—are strong.
Some African countries are seeking to diversify away from the US dollar. How would that affect Travelex’s business?
It depends on what they diversify into. Around 60% of African debt reserves and global commodities are still traded in dollars, so I don’t see that changing soon.
If countries shift to their own currencies, the impact could be significant—there might be less need for Travelex to import or export dollars, since central banks would manage that domestically.
However, if they diversify toward another major currency, such as the euro or yuan, Travelex would still play a role. We already trade in over 80 currencies globally and maintain strong relationships with key institutions like the Bundesbank in Europe and our partners in Asia.
So, diversification would affect the dynamics, but our business model can adapt to different currency systems.
What is Travelex’s position on digital currencies, given that Nigeria has introduced its own?
We currently don’t deal in digital currencies, nor do we plan to in the near term. Our business is purely physical banknotes.
That said, we monitor the digital currency space closely. Regulation tends to evolve after the technology, and that makes us cautious. We also perform due diligence to ensure we’re not transacting with crypto-related entities because of the associated risks.
In the future, as regulatory frameworks mature, that might change—but for now, Travelex remains focused on physical currency movement.
Do you think the recent Central Bank reforms and naira stabilisation can be sustained?
I’m not an economist, but there are positive indicators. Inflation and interest rates are coming down, dollar reserves are rising, and the naira seems to be stabilizing. These are good signs that the reforms are working.
Where do you see Travelex’s business in Nigeria over the next five to ten years?
Our focus will remain on our two core areas: retail foreign exchange and wholesale banknote operations.
In retail, we’re exploring outsourcing partnerships—where Travelex enables other businesses, such as supermarkets, to offer foreign exchange services to their customers. We’re seeing this model succeed in markets like the UK.
For the wholesale side, we’ll continue moving physical currencies, but perhaps in a more diversified set of currencies as global travel and trade patterns shift. As tourism and business travel rebound, we expect to see greater activity and more varied currency flows, not just dollars.
Are there plans for expansion in Nigeria or other African markets?
From a banknote perspective, we don’t plan to expand our physical presence beyond Nigeria. We can efficiently serve most of Africa from our UK vault, thanks to our logistics network.
However, retail expansion is always on the table if the right opportunity arises—particularly in major airports, which have traditionally been Travelex’s stronghold. If inbound tourism increases significantly in markets like Kenya or Tanzania, we would consider opening retail operations there.
What challenges does Travelex face operating in Nigeria?
I wouldn’t call them challenges—just differences. Every country has its own regulatory and operational processes. Our Nigerian team understands the local environment and ensures full compliance. That’s why we maintain a physical presence here: to handle documentation, customs, and coordination with the Central Bank effectively.
How important is your Nigerian team to Travelex’s global operations?
Extremely important. They’ve been with us for many years, are very experienced, and play a crucial role in facilitating our banknote operations. Even during quiet trading periods, they remain essential to maintaining relationships and readiness for when the market rebounds.
Any final thoughts on Travelex’s operations in Nigeria or Africa?
Our global focus is on strengthening our core capabilities—retail outsourcing and wholesale banknotes—and doing what we already do, better. Africa remains a key region, and Nigeria continues to be an important market for us.
How would you compare the African and Asian markets?
They’re very different. Africa remains heavily dollarised, whereas Asia’s markets are largely non-dollarised, with strong local currencies like the baht, yuan, and Hong Kong dollar.
However, the US dollar still plays a significant role in both regions due to commodity trade and reserve structures. We trade both in and out of Asia as well, moving dollars and local currencies, so the dynamics vary by region.
