Nigeria's Net Forex Inflow Drops 18.3% to $48.1 Billion in First Nine Months

 

Nigeria's net foreign exchange (forex) inflow declined significantly by 18.3 per cent year-on-year (YoY) to $48.1 billion in the nine months ended September 2025, down from $58.8 billion in the corresponding period of 2024, according to data from the Central Bank of Nigeria (CBN).

The reduction in net inflows stems primarily from a sharper 15 per cent YoY decrease in total forex inflows, which fell to $83.71 billion from $99.44 billion in the same period the previous year. This outweighed a more moderate 12.2 per cent YoY reduction in outflows, which dropped to $35.65 billion from $40.61 billion.

Despite the overall downturn, there were signs of recovery in the third quarter (Q3) of 2025, with net forex inflow rebounding by 20 per cent quarter-on-quarter (QoQ). This suggests potential stabilization or improvement in later periods, possibly influenced by ongoing forex market reforms, increased non-oil inflows, and efforts to boost investor confidence.

The decline occurs amid broader economic reforms aimed at unifying the forex market and enhancing liquidity. While external reserves have shown resilience in recent months—reaching levels around $45-46 billion in late 2025 and early 2026—the reduced net inflows highlight ongoing challenges, including lower oil-related earnings and global economic pressures.

Analysts note that sustained improvements in oil production, non-oil exports, diaspora remittances, and foreign investment could help reverse the trend in full-year figures. The CBN's policies, including tighter monetary controls and market-driven exchange rates, continue to play a critical role in managing forex dynamics.

This development underscores the need for diversified forex sources to strengthen Nigeria's external position and support economic stability in the coming quarters.