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If you look at the entry for Niamh is this site's dictionary you will see that it actually gives three different pronunciations used in Ireland:
NYEE-əv, NYEEV, NYEE-əw. My understanding is that's because Irish Gaelic actually has different dialects in different parts of Ireland which pronounce things somewhat differently. When people in Ireland are speaking English, my understanding is also that Niamh usually just rhymes with Steve or Eve.