Yield on Naira assets higher than foreign currency assets, FirstBank CEO tells diaspora Nigerians

THE Managing Director and Chief Executive Officer of FirstBank Group, Mr. Olusegun Alebiosu, has urged Nigerians in the diaspora to channel more of their savings and investments into the domestic economy, noting that returns on naira-denominated assets are currently significantly higher than those on foreign currency investments.

Alebiosu made the call on the sidelines of the 2026 edition of the FirstBank Nigeria Economic Outlook, where he highlighted improving macroeconomic conditions and recent appreciation of the naira as key factors making local assets more attractive.

He emphasised that Nigerians abroad stand to gain more by investing in local treasury bills, government bonds, equities and real estate, particularly at a time when yields on naira assets are elevated and currency stability is gradually returning.

“With the appreciation of the naira in recent times, it makes sense for Nigerians in the diaspora to send their money home and reap the benefits,” Alebiosu said. “Keeping savings abroad, in many cases, is a waste of opportunity. When you invest locally, you get value for money, value in assets, and you also contribute to growth that fuels the economy.”

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He stressed that higher domestic yields, combined with improving confidence in Nigeria’s economic reforms, present a compelling case for diaspora capital to play a more active role in supporting investment and development.

The 2026 Economic Outlook event, themed “The Great Calibration: Mastering Resilience in an Era of Asynchronous Growth,” brought together policymakers, economists, business leaders and investors to review Nigeria’s economic performance and prospects for the year ahead.

Earlier in his keynote address, Mr. Yemi Kale, former Statistician-General of the federation and current Group Chief Economist and Managing Director of Research and Trade Intelligence at Afreximbank, said Nigeria must strengthen its value chains and invest aggressively in technology to build long-term economic resilience.

Kale noted that the country’s macroeconomic landscape is undergoing a fundamental transition across four key areas.

According to him, growth momentum is stabilising, driven largely by services and industry, while agriculture is recovering from recent weather-related disruptions.

He also pointed to a clear moderation in inflation, explaining that headline inflation has declined sharply, supported by exchange rate stability, improved food supply, tighter monetary discipline and the impact of recent rebasing exercises.

“Third, the foreign exchange reforms appear to be working,” Kale said. “FX unification has improved transparency and liquidity. Arbitrage windows are narrowing, and monthly FX volatility dropped below four percent in 2025, creating a more stable planning environment for businesses and investors.”

On Nigeria’s external position, Kale said structural reforms, including gains from local refining, are strengthening macroeconomic stability and anchoring a more predictable outlook for 2026.

“The bottom line is that rising policy credibility, combined with structural savings from refining, is supporting a more stable economic outlook for Nigeria,” he added.

Kale further observed that African countries aligning policies with economic fundamentals and regional trade reforms are attracting capital faster and recording stronger growth. He said Nigeria’s recent reforms, particularly in foreign exchange management and fuel subsidy removal, are gradually restoring investor confidence.

Beyond macroeconomic reforms, Kale highlighted climate change as a growing macroeconomic variable across Africa, noting that while climate shocks pose risks to growth, they also create opportunities. He said Africa’s vast renewable energy potential—ranging from solar and hydro to gas monetisation—positions countries like Nigeria to attract private capital through energy transition initiatives.

The Nigeria Economic Outlook is FirstBank’s annual customer-facing event designed to set the tone for prevailing economic realities, equip customers with actionable insights, and position the bank as a trusted partner for personal, business and corporate financial decisions in the year ahead.