Nigeria Records Significant Improvement in FX Access Ranking After Reforms

Nigeria has achieved a 15-place jump to rank fourth among African economies in the Absa Africa Financial Markets Index 2025, signalling a marked improvement in foreign exchange (FX) access and investor capital mobility following recent policy reforms by the Central Bank of Nigeria (CBN).

The index attributes Nigeria’s leap to sweeping FX market reforms led by the CBN, including the unification of multiple FX exchange windows and clearance of a US$7 billion outstanding FX obligation backlog. These changes aim to streamline capital flows, enhance repatriation ease for investors, and reduce foreign-exchange risk premiums.

Implications for Investment and Market Confidence

The improvement in FX access ranking is likely to bolster investor confidence in Nigeria’s macro-framework and support inflows of foreign portfolio capital. For corporates operating in sectors exposed to FX risk, such as real estate, construction and infrastructure, the reforms may ease hedging costs and improve access to overseas funding.

Nevertheless, analysts caution that structural issues remain. While FX windows have been unified, ensuring consistent liquidity and mitigating exchange-rate volatility will be critical to sustaining this ranking. Execution of reform commitments such as greater transparency, improved governance and robust data disclosure will be essential in translating improved rankings into durable economic gains.

Outlook and Next Steps

As Nigeria positions itself more competitively within the African capital-flow landscape, aligning FX reform progress with broader institutional reforms will be vital. Key near-term milestones include enhancing reserve adequacy, anchoring FX policy credibility, and reducing external-sector vulnerabilities. If sustained, the improved FX access environment could underpin growth in non-oil exports, reduce capital-flow constraints for domestic corporates and strengthen Nigeria’s investment value proposition.