Naira Strengthens 9.16% in Six Months as Nigeria Exits FATF Grey List and Reforms Boost Investor Confidence
Nigeria’s currency, the naira, has gained 9.16 percent against the U.S. dollar over the past six months, rising from ₦1,605 in April 2025 to ₦1,457.95 per dollar at the official market as of October 24, 2025. The steady appreciation signals renewed investor confidence, fueled by Nigeria’s ongoing financial reforms and global recognition of its improving economic governance. Central Bank of Nigeria (CBN) data showed a ₦147.05 gain over the period, with similar gains in the parallel market where the naira rose by 6.83 percent, narrowing the gap between official and street exchange rates.
A major catalyst behind the naira’s rebound was Nigeria’s recent removal from the Financial Action Task Force (FATF) grey list, which restored global confidence in the nation’s anti-money laundering and counter-terrorism financing frameworks. Financial analysts noted that the move had an immediate impact on currency markets. “It means a whole lot. The naira and rand have gained almost one percent since the news,” said Bismarck Rewane, CEO of Financial Derivatives Company, emphasizing the improved market sentiment.
The FATF delisting followed Nigeria’s successful completion of a two-year Action Plan to tighten financial compliance and transparency. Leaders in the business community, including NESG’s CEO, Dr. Tayo Aduloju, and Paga’s CEO, Tayo Oviosu, commended the coordinated efforts of the CBN, EFCC, and NFIU. Oviosu described the development as a “big deal,” noting that it would attract renewed foreign direct investment (FDI) and reestablish Nigeria’s credibility with global financial institutions.
Investor optimism was further lifted by FTSE Russell’s decision to place Nigeria on its Watch List for a possible upgrade to Frontier Market status. The global index provider cited Nigeria’s improved foreign exchange transparency and the successful clearance of FX backlogs as key factors. According to FTSE’s 2025 Annual Equity Country Classification Review, international investors reported no significant delays in capital repatriation since early 2025 — a sharp contrast to the liquidity crunch of 2023 when Nigeria was downgraded to “Unclassified.”
Economic analysts expect the naira’s recent stability to continue in the near term, supported by steady oil receipts and rising foreign reserves. Experts at Cowry Asset Management projected mild pressure from ongoing FX demand but believe the local currency will hold firm under the Central Bank’s new policy direction. With reforms under Governor Olayemi Cardoso showing results, Nigeria appears to be regaining the trust of global markets — signaling a cautiously optimistic path for the naira and broader economy.
source: Leadership