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

Nigeria’s net foreign exchange inflows rose to $22.50 billion in the second quarter of 2026, their highest level since the fourth quarter of 2019, as a sharper decline in dollar outflows outweighed a modest reduction in fresh inflows, strengthening the country’s external position.

Data from the Central Bank of Nigeria’s (CBN) Q2 2026 Statistical Bulletin showed that net foreign exchange flows increased from $21.33 billion in the first quarter to $22.50 billion in the second, an improvement of $1.17 billion, or about 5.5 per cent.

The increase was driven primarily by the moderation in outflows rather than stronger aggregate inflows. Total foreign exchange inflows fell from $32.39 billion in Q1 to $31.43 billion in Q2, while outflows declined more sharply from $11.05 billion to $8.93 billion.

The figures suggest that more of the foreign exchange entering the economy was retained within the system during the quarter, providing a stronger external liquidity position at a time when the naira remains sensitive to the balance between dollar supply and demand.

Monthly figures showed net foreign exchange flows of $6.53 billion in April, $7.91 billion in May and $8.06 billion in June, with June recording the highest monthly inflow balance during the quarter.

Autonomous sources, representing transactions outside the CBN and banking system, remained the dominant channel. Their inflows reached $23.30 billion during the quarter, while the CBN recorded combined inflows of $8.13 billion.

Net flows through autonomous channels totalled $19.14 billion, compared with about $3.35 billion through the CBN, although the apex bank recorded a negative net flow of $176.28 million in April before returning to positive territory in May and June.

The composition of these flows matters because a stronger external position depends not only on the volume of dollars entering Nigeria but also on how much remains available after payments abroad.

The improvement coincided with stronger portfolio investment. Separate CBN balance-of-payments data showed portfolio investment inflows rising to $6.51 billion in Q2 from $4.49 billion in Q1, reflecting increased foreign participation in Nigerian financial assets.

However, portfolio capital is generally more sensitive to interest rates, exchange-rate expectations and global investor sentiment than longer-term productive investment. The durability of foreign exchange inflows will therefore depend partly on whether the country can sustain investor confidence while attracting more direct investment and expanding export earnings.

Nigeria’s external position also received support from stronger merchandise exports, including crude oil, natural gas, refined petroleum products and non-oil goods. Rising diaspora remittances provided another source of foreign exchange.

The higher net flow is encouraging for the economy because sustained dollar inflows can support foreign exchange liquidity, improve the capacity to meet external obligations and reduce pressure on the naira. But net FX flows should not be confused with the stock of foreign reserves, which is also affected by other transactions and valuation changes.

The latest figures show that Nigeria is retaining a larger net amount of foreign exchange than in the preceding quarter. The next test is whether the improvement can be sustained through stronger export receipts, remittances and productive investment rather than relying excessively on potentially volatile portfolio inflows.