Nigeria’s net foreign exchange flows rose to $22.50bn in the second quarter of 2026, the highest level since the fourth quarter of 2019, as private-sector inflows strengthened and the Central Bank of Nigeria (CBN) reduced its dollar sales.
The figures are contained in the Financial Markets Dealers Association’s (FMDA) Q2 2026 FX Market Update, based on CBN data and reported by Nairametrics on October 15, 2026.
Autonomous inflows, representing foreign exchange supplied outside the CBN’s direct interventions, climbed to $23.31bn, the highest since the first quarter of 2020. They accounted for 74.15% of total inflows, their largest share in 13 years, compared with about 64% throughout 2025.
The figures point to a shift towards private sources of foreign exchange supply as the central bank reduces its direct participation in the market.
CBN dollar sales fell by 66.73% to $418.08m in the second quarter, from $1.26bn in the first quarter. For the first half of 2026, the bank’s total sales stood at $1.67bn, the lowest half-year figure since the FMDA began its records in 2008.
Total foreign exchange outflows also declined by 19.22% to $8.93bn in the second quarter. Net flows for the first half reached $43.84bn, representing a 47.24% increase from the corresponding period of 2025.
However, demand for foreign exchange remained substantial, with utilisation rising to $18.34bn, its highest level since the third quarter of 2011.
According to Nairametrics’ report on the FMDA update, financial services accounted for $9.64bn, or 52.58% of total utilisation, while merchandise imports accounted for $5.10bn.
The figures suggest that financial transactions and services payments accounted for a larger share of reported foreign exchange utilisation than merchandise imports during the quarter.
The FMDA cautioned that net FX flows represent the difference between reported inflows and outflows. They should not be interpreted as an equivalent increase in Nigeria’s external reserves.
In a separate weekly report dated October 12, 2026, the association also described the country’s foreign reserves as the highest since December 2008, Nairametrics reported.
The growing contribution of private inflows could reduce pressure on the CBN to supply dollars directly, but the sustainability of that trend will depend partly on investor confidence and the stability of capital flows.
Credit Direct’s FX report, published on August 4, 2026, identified rising foreign portfolio outflows as a key downside risk to exchange-rate stability.
For businesses, importers and households, the composition of foreign exchange supply remains important. Strong private inflows can support market liquidity, but a reversal in investor sentiment could weaken supply and renew pressure on the naira.
The second-quarter figures therefore point to improved private-sector participation in Nigeria’s foreign exchange market, while leaving the durability of that improvement dependent on continued inflows and broader economic confidence.
