(DDM) – Nigeria’s financial markets have experienced a major boost following the country’s removal from the Financial Action Task Force (FATF) grey list, signaling progress in the fight against money laundering and terrorist financing.
Diaspora Digital Media (DDM) gathered that investors’ confidence surged as the naira hit a 10-month high of N1,444.42 to the dollar at official markets last Wednesday, while parallel market rates reached N1,465 per dollar.
The milestone achievement also coincided with Nigeria’s foreign reserves crossing $43 billion, strengthening the local currency and supporting sustainable economic growth.
The FATF, a Paris-based global watchdog, monitors countries with strategic deficiencies in combating illicit financial flows. Membership includes 40 countries, backed by institutions such as the World Bank and International Monetary Fund (IMF).
Nigeria’s exit from the grey list follows successful implementation of the FATF’s 40 recommendations, a move that signals improved compliance with global anti-money laundering and counter-terrorist financing standards.
Experts say the delisting is likely to attract new investment inflows, ease payment challenges for local businesses, and enhance the naira’s competitiveness in global markets.
Dr. Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), noted that confidence surged immediately after the announcement, lifting the naira by about N10 per dollar in official trading.
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso emphasized that the FATF’s decision reflects the success of coordinated reforms and demonstrates the growing integrity of Nigeria’s financial system.
“Our priority now is to consolidate these gains, ensuring that compliance, innovation, and trust continue to advance hand in hand to reinforce financial stability and strengthen Nigeria’s global credibility,” he said.
The apex bank’s reform measures, including the introduction of an electronic Foreign Exchange Matching System (EFEMS), improved liquidity management, and stricter enforcement of the Foreign Exchange (FX) Code, have contributed to narrowing gaps between official and parallel market rates and curbing speculative practices.
These interventions, coupled with inflows from foreign portfolio investors and international oil companies, have fortified the naira and boosted external reserves.
Analysts from Commercio Partners attribute the naira’s rally to stronger demand, improved market confidence, and rising external reserves. Ifeanyi Ubah, Head of Research, remarked, “Nigeria’s current naira rally reflects a healthier external position and a stronger foundation compared to previous cycles of volatility.”
Other countries removed from the FATF grey list include South Africa, Mozambique, and Burkina Faso, marking a global trend of enhanced compliance and financial transparency.
For Nigeria, the milestone achievement opens the door to greater investment, reduced capital costs, and improved access to international financial markets.
Despite optimism, experts caution that maintaining momentum will require continued macroeconomic discipline, diversification of exports, and consistent crude oil production.
Nevertheless, Nigeria’s removal from the FATF grey list and the rising naira represent a significant turning point in the nation’s journey toward financial stability and global market credibility.
