Nigeria’s net FX flows hit $22.5bn, highest since 2019

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us Nigeria’s net FX flows hit $22.5bn, highest since 2019 Money October 26, 2026 12:00 am File: CBN Building, Abuja

Nigeria’s net foreign exchange flows rose to $22.50bn in the second quarter of 2026, their highest level since the final quarter of 2019, as a reduction in dollar outflows outweighed a slight decline in total inflows.

Data from the Central Bank of Nigeria’s Q2 2026 Statistical Bulletin show that net FX flows increased by 5.5 per cent from $21.33bn in the first quarter to $22.50bn in Q2.

The improvement means more FX remained in the economy after accounting for outflows. However, it does not necessarily mean that all the funds entered the CBN’s reserves or were available for immediate use in the official market.

Total FX inflows fell from $32.39bn in Q1 to $31.43bn in Q2, while outflows dropped more sharply from $11.05bn to $8.93bn.

The $2.12bn decline in outflows more than offset the $960m reduction in inflows, lifting the net balance by $1.17bn.

Monthly figures also showed a steady rise in net flows during the quarter. Nigeria recorded $6.53bn in April, $7.91bn in May and $8.06bn in June, which was the strongest month of the period.

Despite the recovery, the Q2 figure remained below the historical peak of $31.93bn recorded in the third quarter of 2014. It was also lower than the $25.08bn reported in the fourth quarter of 2019.

The CBN figures show that autonomous sources, meaning FX transactions outside the central bank’s direct channel, played a major role in the quarter’s flows.

Net FX flows through autonomous sources stood at $6.70bn in April, fell to $5.70bn in May and rose to $6.74bn in June.

Flows through the CBN were more volatile. The central bank recorded a net outflow of $176.28m in April before posting net inflows of $2.21bn in May and $1.32bn in June.

The figures suggest that private sector and other autonomous channels continued to provide a substantial share of the net FX entering the economy.

The improvement also coincided with an increase in foreign portfolio investment.

Portfolio investment rose by 45 per cent to $6.51bn in Q2, from $4.49BN in Q1, according to previously reported CBN data.

Portfolio inflows can provide additional foreign currency to the economy and support activity in the financial markets. However, such funds can be withdrawn when investors’ expectations change, making them less stable than longer-term investments.

Foreign direct investment has remained a concern. Data from the National Bureau of Statistics showed that FDI declined sharply in Q1 of 2026, even as overall capital importation increased.

The contrasting movements indicate that Nigeria’s FX inflows are being shaped by different types of investment, with portfolio funds gaining ground while longer-term direct investment remains weak.

Sustained net FX inflows could help ease pressure on the FX market and improve dollar liquidity. The durability of that improvement will depend on whether inflows remain strong, outflows stay contained and more stable sources of foreign investment recover.

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