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Official naira exchange rate rises from N1,605 to N1,457.95 against the dollar in six months.
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Black market shows 6.83% appreciation, narrowing the parallel market gap.
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FATF delisting and FTSE Watch List exit boost global investor confidence in Nigeria.
Nigeria’s naira has recorded a 9.16 per cent gain against the US dollar over the last six months, strengthening from N1,605 in April 2025 to N1,457.95 on October 24, 2025, at the official market, according to the Central Bank of Nigeria (CBN).
The appreciation was also visible in the parallel market, where the naira rose to N1,500 from N1,610, reflecting a narrowing exchange rate disparity and improved market liquidity.
Experts attribute the rebound to macroeconomic reforms and international recognition of Nigeria’s strengthened financial environment, following the country’s removal from the Financial Action Task Force (FATF) grey list.
“Delisting from the FATF grey list immediately impacted the market. The naira and rand have gained almost one per cent since the news. It is now N1,490 in the parallel market,” said Bismarck Rewane, CEO of Financial Derivatives Company.
The delisting came after Nigeria successfully implemented a two-year Action Plan to enhance its anti-money laundering and counter-terrorist financing systems. Analysts and stakeholders, including Dr Tayo Aduloju of NESG and Tayo Oviosu of Paga, hailed the milestone as critical for attracting foreign direct investment (FDI) and restoring global partnerships.
The FTSE Russell Watch List exit, citing compliance with all five Quality of Markets criteria, further strengthened investor confidence. The review noted that foreign exchange queues had been cleared and institutional investors no longer faced delays in repatriating capital.
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“Market participants report that FX backlogs have been resolved, allowing smooth capital repatriation,” the FTSE report said.
Since being downgraded to “Unclassified” status in 2023 due to foreign exchange distortions and illiquidity, Nigeria has undertaken sweeping reforms under CBN Governor Olayemi Cardoso, including exchange rate unification, backlog clearance, and real-time FX market transparency measures.
Analysts at Cowry Assets Management forecast the naira to maintain relative stability, supported by steady oil receipts and gradual reserve accumulation.
They noted potential mild pressures in the short term due to FX demand but cited strong fundamentals underpinning the currency.
