Naira Up, FTSE Russell Confirms CBN Unrestrictive FX Repatriation Policy
The naira reclaimed value against the US dollar after a three-day downward trend at the Nigerian Foreign Exchange Market (NFEM).
Boosted by foreign investors’ confidence, the local currency picked up on Wednesday at the official window, supported by fuelled improvement in foreign currency supply.
Market confidence strengthened after FTSE Russell, a global index service provider, confirmed that foreign investors are now finding it easy to repatriate US dollar from Nigerian capital market.
With the absence of FX restriction, FTSE Russell revealed a plan to upgrade the Nigeria index to frontier market from unclassified status following its annual classification review for countries monitored by its global equity and fixed income indices.
The global service index said market participants have reported that the Nigeria’s FX queues had been cleared and that international institutional investors are no longer experiencing any material delays in their ability to repatriate capital from Nigeria.
MarketForces African reported that Nigeria was reclassified from Frontier to Unclassified market status from September 2023 due to in ability of international institutional investors to repatriate capital from Nigeria.
Post Naira reforms development in the FX markets showed the CBN has ended FX repatriation restriction, the same reason why MSCI Index downgraded Nigeria’s status.
The spot rate has been trading behind N1500 per dollar, after it breached the psychological barrier in September, supported by $150 million injected into the official window by the authority.
Even with surging demand for hard currency early in Oct, the local currency has maintained its ‘steaze’ against the greenback. Some analysts said the naira rate is influenced by broad-based pressure on the US dollar index (DXY) across global forex markets.
In a report, analysts at TrustBanc Financial Group Limited recalled that the last time the naira traded below ₦1,500 was on March 4th, 2025, and then six months later it achieved a similar feat.
The period saw a significant FX repatriation when US President Donald Trump’s tariff hike cracked foreign investors’ confidence. The CBN intervention peaked as US dollar demand soared as foreign portfolio investors headed towards safety and exited their Naira positions.
“Between March 1st and 14th, net FPI flows plunged to -$706.8 million, and the CBN stepped in, selling $733.9 million during that period to contain the pressure.
“…Unlike during ex-CBN Governor, Godwin Emefiele era, foreign investors were free to exit. The CBN allowed it and funded it. In just two months, it had sold $2.75 billion,” TrustBanc said in a note.
Updated daily FX data released by the Central Bank revealed that the local currency, the naira, strengthened against the dollar on Wednesday, gaining 0.03% to ₦1,470.62.
The naira touched intraday high of N1475 as FX pressure eased. The exchange rate appreciation indicates an improved demand for the local currency.
In the parallel market, the naira appreciated, rising 0.12% to close at ₦1,492. This leaves the spread between the official and parallel markets to hover around N20.
Despite various measures to defend the Naira, a significant gulf between the “official rate” and the unofficial rates has persisted. # Naira Up, FTSE Russell Confirms CBN Unrestrictive FX Repatriation Policy Banks Deposit Excess Funds With CBN at 24.5% SDF Rate
