Nigeria has achieved one of its strongest foreign exchange (FX) performances in years, rising 15 places to secure the fourth position in Africa for ease of capital access and repatriation, according to the Absa Africa Financial Markets Index 2025.
The report, released by Absa Group in collaboration with the Official Monetary and Financial Institutions Forum (OMFIF), credited Nigeria’s remarkable climb to major reforms spearheaded by the Central Bank of Nigeria (CBN) over the past year. These include the unification of multiple FX windows, the clearance of a $7 billion FX backlog, and the gradual removal of interventions that previously distorted the market.
“Nigeria stands out as the highest riser following comprehensive FX market reforms,” the report stated, noting that the country’s Pillar 2 score rose sharply from 52 to 73, lifting it to fourth place on the continent.
The index evaluates 29 African countries across six categories—market depth, FX access, transparency, regulatory environment, and macroeconomic stability—to determine how effectively each nation attracts and retains foreign investment.
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Absa noted that Nigeria’s FX liberalisation drive, launched under President Bola Tinubu’s administration, has restored investor confidence and improved transparency after years of restricted dollar access and exchange rate uncertainty.
While analysts admit the reforms have triggered short-term volatility and inflationary pressure, they emphasise that Nigeria’s liberalised FX market is already drawing stronger foreign interest. The nation’s financial market has reportedly gained over 45 percent year-to-date, positioning it for sustained growth and deeper global participation.
