Onome Amuge
Global currency services firm Travelex is positioning for a gradual recovery in Nigeria’s foreign exchange market after years of turbulence, as early signs of macroeconomic stability, including easing inflation and rising reserves, begin to revive demand for wholesale currency distribution.
“Nigeria has been one of our largest markets in Africa, historically in terms of volume. We’re beginning to see a few banks start ordering again. There’s more movement of dollars into the country — it’s early, but it’s promising,” Adam Kettle, the company’s wholesale banknote director, UK & Africa, said in a business a.m interview.
Travelex’s presence in Nigeria dates back to its acquisition of Thomas Cook’s foreign exchange operations roughly 40 years ago. Today, it maintains two distinct entities comprising a dormant retail business, which once operated airport Bureau de Change (BDC) counters, and a representative office overseeing the import and export of banknotes for both the Central Bank of Nigeria (CBN) and major commercial banks.
The company’s retail arm, once visible in international terminals, was shuttered during the pandemic when travel collapsed and Nigeria’s BDC regulations tightened. “We mothballed that business. With reforms underway and new capital requirements for BDCs, we’re waiting to see how that space evolves,” Kettle explained.
In contrast, its wholesale banknote division, managed from London, remains active. Travelex supplies physical currencies to over 22 African markets, making Africa its largest regional client base for cash movement. Nigeria, despite economic challenges, remains at the centre of that network.
Kettle described Travelex’s core model as door-to-door, transporting banknotes from its secure vault in the UK directly to designated vaults in Lagos or Abuja. The process, he said, is highly regulated, transparent, and efficient, supported by relationships with global carriers such as British Airways, Virgin Atlantic, and Kenya Airways.
“Our logistics team handles large-scale movements every week. Each shipment is fully documented, insured, and cleared with regulators in both countries. Transparency is non-negotiable,” he said.
Nigeria’s forex environment, long hampered by liquidity shortages, has been slowly stabilising in recent months. The CBN’s reforms under new leadership, including liberalising the official exchange rate, have helped narrow the gap between the official and parallel markets, while rising reserves and lower inflation have strengthened confidence.
“There are clearly green shoots. Interest rates are going down, inflation is coming down, and the dollar reserves are improving. Whatever policies are in place, they seem to be having an effect,” Kettle observed.
Across Africa, several economies are exploring ways to reduce their dependence on the US dollar. But Kettle remains sceptical about any imminent shift away from the greenback. “Around 60% of African debt reserves and most global commodities are still traded in dollars. That’s not going to change overnight,” he noted.
Still, Travelex is prepared to adapt. The firm trades in more than 80 currencies globally and maintains relationships with major institutions, including the Bundesbank and central banks in Asia. “If countries diversify toward the euro or yuan, we’re well placed. If they move to local currencies, then central banks will take more control — and our role would naturally evolve,” Kettle said.
Despite Nigeria’s early foray into digital money through the eNaira, Travelex is steering clear of crypto and central bank digital currencies (CBDCs) for now. “We’re purely a physical banknote business. Regulation tends to follow innovation, not the other way around, and that makes us cautious,” he noted.
Kettle added that Travelex performs extra due diligence to ensure it does not transact with crypto-linked firms, citing “high risk and regulatory uncertainty” as deterrents. “As frameworks mature, that may change — but for now, our focus is on what we do best: physical currency movement,” he remarked.
Travelex stated that it has no immediate plans to expand its physical footprint beyond Nigeria, preferring to serve the continent from its London base. “With our logistics network, we can get money into Africa quickly. Retail expansion, however, is always possible if the right opportunity arises — particularly in airports, where inbound tourism is growing,” Kettle said.
He credits Travelex’s small Lagos team with sustaining the company’s operations through turbulent years. “They’re very experienced, deeply invested, and absolutely essential to our business. Even when trading is quiet, maintaining those relationships keeps us ready for recovery,” he said.
Looking ahead, Kettle sees opportunity in a diversified currency landscape shaped by travel, trade, and technology. “Banknotes aren’t going away. The mix may change — more euros, more regional currencies, but people and businesses will always need physical money to move,” he noted.
