Nigeria’s FX market records $31.06bn inflows in 7months, foreign share at 39%
Exporters and importers were the single largest contributors, supplying $10.21 billion, while the Central Bank of Nigeria (CBN) injected $3.15 billion.
The year opened strongly, with January inflows surging 53.3% month-on-month (m/m) to $4.74 billion, supported by a 192.1% jump in foreign inflows to $2.31 billion — the highest in nearly two years — as reforms such as the Electronic Foreign Exchange Market System (EFEMS) boosted transparency and investor confidence. Foreign portfolio investment (FPI) rose 213%, though foreign direct investment (FDI) and other corporate inflows declined.
Momentum weakened in February (-12.9% to $4.12 billion) and March (-5.5% to $3.90 billion), as moderating yields and global trade uncertainties weighed on sentiment. March’s foreign inflows plunged 61.9% to $787.2 million, a six-month low, amid escalating U.S. trade tensions. April saw another dip (-5.7% to $3.67 billion) as foreign inflows fell 16.5% to $657.4 million, despite a sharp rise in FDI. Local inflows also slipped 2.9% to $3.02 billion.
A sharp rebound followed in May, with inflows jumping 62% to $5.96 billion — the highest in the period — driven by record local inflows of $4.96 billion (up 64.2%, the strongest in six years) and a 51.7% rise in foreign inflows to $997.6 million. June saw a reversal, with total inflows falling 28.1% to $4.28 billion, as local inflows plunged 61.4% to $2.11 billion, while foreign inflows more than doubled to $2.73 billion — the highest in 29 months — on a 133.6% spike in FPIs.
The rally faded in July, with total inflows down 20.9% to $3.83 billion. Foreign inflows fell 35.6% to $1.75 billion on steep drops in FPIs, FDIs, and other corporate flows. Local inflows eased 1.9% to $2.07 billion, supported by strong gains from individuals (+117.5%), the CBN (+77.8%), and non-bank corporates (+5.4%), offsetting a 30.1% drop from exporters/importers.
About The Author
