Nigeria Reclaims $30bn, Draws $20.98bn Inflows after FATF Exit
Nigeria’s economy is rebuilding momentum on the back of renewed investor confidence, with the country reclaiming an estimated $30 billion in lost investment potential following its exit from the Financial Action Task Force (FATF) grey list.
The country also attracted $20.98 billion in foreign capital inflows within the first 10 months of 2025, a 70 per cent surge over total inflows recorded in 2024 and a dramatic 428 per cent rise from the $3.9 billion posted in 2023.
Central Bank of Nigeria (CBN) governor, Olayemi Cardoso, who disclosed these figures at the 60th Annual Bankers’ Dinner, said Nigeria’s economic turnaround reflects one of the most ambitious reform cycles in recent history, anchored on renewed monetary discipline, transparency and a credible market framework.
He noted that the naira now trades within a narrow, stable range, with the once-wide gap between official and parallel markets shrinking to less than two per cent from more than 60 per cent.
Cardoso said investor confidence has returned strongly as foreign inflows, diaspora remittances and market participation rise in response to improved settlement efficiency, reporting standards and restored trust. Remittances rose by 12 per cent this year, boosted by the Non-Resident BVN policy, which is expected to drive even stronger inflows in 2026.
He explained that Nigeria’s FATF grey-listing had carried a heavy economic price, as countries on the list typically suffer an average of 7.6 per cent of GDP in lost capital inflows in the first year, equivalent to more than $30 billion in Nigeria’s case.
Exiting the list, he said, is therefore a significant confidence boost for investors and global correspondent banks after Nigeria addressed key deficiencies through enhanced intelligence-sharing, stronger supervision and technology-driven compliance systems such as EFEMS and the FX Code.
Nigeria’s domestic fundamentals also continue to strengthen. Inflation has fallen sharply from 34.6 per cent in November 2024 to 16.05 per cent in October 2025, marking seven straight months of disinflation. Food inflation dropped to 13.12 per cent from 21.87 per cent in August, while GDP expanded by 4.23 per cent in the second quarter of 2025, Nigeria’s strongest quarterly growth in four years, driven by improvements in telecommunications, financial services and rising oil output.
Cardoso said the banking-sector recapitalisation remains firmly on track, with 27 banks having raised capital and 16 already meeting or exceeding their required thresholds ahead of the March 31, 2026, deadline. Stress tests show the industry remains stable even as regulators tighten oversight on cyber-risk, credit governance and operational discipline.
Nigeria’s digital-finance economy is also advancing rapidly, with over 12 million contactless payment cards now in circulation and more than 40 fintech firms operating within the CBN sandbox. Nigeria continues to dominate Africa’s tech landscape, hosting eight of the continent’s nine unicorns.
Looking ahead, Cardoso outlined priorities for 2026 that include maintaining durable price stability, strengthening the banking system, expanding digital payments, deepening fintech innovation, enhancing institutional capacity and improving coordination across monetary and fiscal lines.
He emphasised that stability will remain the foundation for sustained investment, stronger purchasing power and shared prosperity as reforms continue into the new year.
