Nigeria’s net foreign exchange inflow surged to $17.39 billion in the fourth quarter of 2024, driven by autonomous sources such as foreign investments, remittances, and export earnings.
This increase demonstrates improved liquidity in the forex market, according to newly released data from the Central Bank of Nigeria (CBN)’s Quarterly Economic Report.
According to the apex bank, “The economy recorded a higher net foreign exchange inflow, driven largely by inflow through autonomous sources. Foreign exchange inflow through the economy increased by 20.62 per cent to US$27.81 billion from US$23.06 billion in Q3 2024,” the apex bank noted.
This growth was primarily driven by a remarkable 47.55% rise in autonomous inflows, which jumped from $11.03 billion in Q3 2024 to $16.27 billion in Q4 2024, the apex bank stated.
However, inflows through the CBN experienced a slight decline, falling by 4.05% to $11.54 billion from $12.03 billion recorded in the previous quarter. The decline in CBN inflows suggests reduced official forex receipts, possibly due to lower remittances, foreign direct investment (FDI), or official grants.
Increase in Foreign Exchange Outflows
Foreign exchange outflows from the economy also experienced a notable increase, rising by 31.37% to $10.42 billion in Q4 2024, compared to Q3 2024 levels.
The outflows through the CBN rose by 22.98% to $8.99 billion, while those through autonomous sources saw a dramatic 129.59% surge, reaching $1.43 billion, the apex bank said.
“Consequently, net foreign exchange inflow through the economy increased by 14.99 per cent to US$17.39 billion from US$15.13 billion in the preceding quarter. An increase was also recorded in net inflow through autonomous sources to US$14.84 billion from US$10.40 billion in the preceding quarter. A net inflow of US$2.56 billion was recorded through the Bank, compared with a net inflow of US$4.72 billion in Q32024,” CBN noted.
More insights
In November 2024, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the country recorded about $2.35 billion as net inflow into the Central Bank’s foreign reserves.
The Minister said the increase in foreign reserves has contributed significantly to the stability of the naira in the foreign exchange market.
FG has reiterated its ambitions to ramp up crude oil production as a buffer for the fiscal revenues of the country.
The government’s target of 2 million crude oil barrels per day (bpd) for 2024 was achieved.
The CBN reported that the remittances inflows surged by 130% to $553 million as of July 2024, signifying a huge increase in inflow of foreign exchange into the country as well as a guarantee for a stable local currency.
