The recent liberalization of Nigeria’s foreign exchange (forex) market has generated renewed optimism among investors, industry experts say, as greater access to currency resources helps to stabilize markets and improve capital inflows.
Since the Central Bank of Nigeria (CBN) relaxed restrictions on forex availability earlier this year, businesses and investors have reported easier access to foreign currency, fostering an environment conducive to trade, investment, and economic growth.
Market analysts highlight that the policy shift has enhanced transparency and reduced the parallel market premium, leading to improved liquidity and stability.
“Forex liberalization has addressed one of the biggest pain points for investors — unpredictability in currency access and exchange rates,” noted Kemi Adesanya, Chief Economist at Lagos-based financial consultancy FinPro Advisory.
The move is seen as a key driver in attracting both foreign direct investment (FDI) and portfolio investment, with several multinational corporations revisiting expansion plans due to a more favorable forex regime.
Investors interviewed for this report expressed increased confidence in Nigeria’s economic policies, citing the reforms as a signal of the government’s commitment to market-friendly approaches.
However, some caution remains around sustaining the momentum, with calls for complementary fiscal reforms and continued regulatory clarity to maintain investor trust.
The CBN has reiterated its support for the liberalization framework, pledging to monitor market developments and intervene where necessary to prevent volatility.
“This is a pivotal moment for Nigeria’s economic trajectory,” said CBN Governor, Godwin Emefiele. “By opening up the forex market, we are creating a more predictable and investor-friendly environment.”
As Nigeria positions itself for recovery and growth post-pandemic, experts agree that forex market liberalization will be a cornerstone in restoring investor confidence and boosting economic resilience.
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