Nigeria recorded a net foreign exchange (FX) inflow of $15.20 billion in the first quarter of 2025, reflecting a stronger FX position driven by sustained market reforms and rising investor and diaspora confidence.
The latest data, presented at the Nigerian Investor Forum held on the sidelines of the ongoing Spring Meetings of the International Monetary Fund and World Bank in Washington DC, shows that FX inflows rose to $28.92 billion in Q1 2025, while outflows stood at $13.72 billion, reflecting improved liquidity conditions amid evolving policy shifts.
The Q1 net position marks an improvement over the Nigeria’s Net Forex Inflow 2024 – 2025 Q1.net inflow recorded in the same period of 2024, indicating growing traction in the country’s ongoing foreign exchange liberalisation efforts.
The CBN also noted that reforms have helped create a more robust and transparent spot market, with average monthly FX turnover climbing to $8.1 billion in 2025, compared to a 2024 average of $5.5 billion.
What the data is saying
Compared to the first quarter of 2024, Nigeria’s FX inflows grew by 18.68%, rising from $24.37 billion to $28.92 billion.
- This was accompanied by a 32.72% increase in outflows, from $10.34 billion to $13.72 billion, due largely to more liberalised access and growing confidence among market participants.
- Despite the increase in outflows, the positive net balance highlights Nigeria’s strengthened FX liquidity and its ability to meet demand without excessive central bank interventions.
- According to the CBN, its direct participation in the market now accounts for only 2% of market turnover, a significant decline from the previous regime where CBN was the primary supplier.
A closer examination of monthly trends in Q1 2025 reveals variations in FX performance. In January 2025, FX inflows stood at $9.41 billion, with outflows at $4.84 billion, resulting in a net inflow of $4.56 billion.
- February 2025 saw the strongest performance of the quarter, with inflows of $10.64 billion and relatively low outflows of $3.72 billion, delivering a robust net inflow of $6.92 billion.
- However, in March 2025, inflows moderated to $8.88 billion, while outflows increased to $5.16 billion, resulting in a net inflow of $3.72 billion.
- Though lower than February’s peak, March’s performance still reflected solid resilience amid external pressures and seasonal trade demand.
This month-on-month trend reinforces signs of a maturing FX market that adjusts flexibly to both local and global pressures, while maintaining overall positive momentum.
What you should know
Nigeria attracted a total foreign exchange inflow of $99.4 billion in 2024 representing a 44% increase when compared to 2025.
The apex bank also indicated that the increase in forex inflow was due to the forex reform policies headlined by the unification of the naira over a year ago.
The apex bank also indicates that net foreign exchange flows remain positive and grew by 58% in 2024.
The bank stated that the higher inflows were as a result of Improved and diversified sources of liquidity, restored functioning of FX markets, and eliminating backlogs and overhang of FX demand.
