csrreporters 
Nigeria’s removal from the Financial Action Task Force (FATF) grey list a global index that flags countries with deficiencies in combating money laundering and terrorist financing has triggered a wave of optimism in the local economy, lifting the naira and reigniting investor confidence.
Following the FATF’s decision on October 24, 2025, the naira surged to a 10-month high of ₦1,444.42 per dollar at the official market, while trading at ₦1,465 per dollar on the parallel market, as dollar holders rushed to sell amid improved liquidity and renewed confidence.
Market analysts attribute the gains to Nigeria’s strengthened global credibility and the Central Bank of Nigeria’s (CBN) sweeping financial reforms, which have reduced speculative activities and narrowed the gap between official and parallel exchange rates.
The FATF delisting is widely seen as a policy victory for both the federal government and the CBN. Established by the World Bank and IMF-backed body, FATF evaluates compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) standards. Countries under its grey list face greater transaction scrutiny, which often stifles trade and investment.
With this delisting, Nigeria joins South Africa, Mozambique, and Burkina Faso in successfully exiting the grey list, signaling international recognition of its progress in strengthening financial oversight and law enforcement systems.
CBN’s Reform-Driven Confidence
CBN Governor Olayemi Cardoso hailed the FATF decision as “a strong affirmation of Nigeria’s reform trajectory and the growing integrity of its financial system.”
Cardoso emphasized that the decision reflects coordinated national efforts and reaffirmed the CBN’s focus on consolidating progress through transparency, innovation, and compliance.
Under his leadership, the CBN has launched reforms including the Foreign Exchange (FX) Code a framework emphasizing ethics, governance, and compliance and the Electronic Foreign Exchange Matching System, designed to provide real-time data transparency and accountability.
“The FX Code marks a new era of transparency in Nigeria’s foreign exchange market,” Cardoso said. “Violations will attract sanctions under the CBN Act 2007 and BOFIA Act 2020.”
Economic Indicators Strengthen
Since December 2024, when the naira traded at ₦1,661 per dollar, the currency has appreciated by over 15%, its best rally in nearly a year.
Nigeria’s foreign reserves also climbed to $43.10 billion by October 28, 2025, up from $40.51 billion in July, representing more than eight months of import cover.
The CBN further reported that the current account surplus rose to $5.28 billion in Q2 2025, up from $2.85 billion in Q1, reflecting stronger oil earnings, growing non-oil exports, and higher capital inflows.
According to Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria, “The FATF announcement has tremendously boosted confidence. Dollar holders are selling off positions as the market stabilizes.”
He credited the CBN’s policies for curbing speculation and deepening compliance culture, while traders across Lagos and Abuja confirmed the shrinking gap between market rates a sign of growing stability.