Autonomous inflows boost Nigeria’s foreign exchange market
Nigeria’s foreign exchange market is seeing significant recovery, driven by rising autonomous inflows such as diaspora remittances, portfolio investments, and non-oil export earnings. The Central Bank of Nigeria’s move to clear over $7bn in unsettled FX obligations has enhanced investor confidence and strengthened external reserves. Olayemi Cardoso, the CBN Governor, highlighted the importance of credibility and transparency in restoring trust. Recent reforms have attracted positive ratings from global agencies and encouraged more foreign capital into the economy.
TLDR
- The Central Bank of Nigeria cleared more than $7bn in unsettled FX obligations, boosting investor confidence and supporting reserve growth.
- Forex inflows into Nigeria reached $112bn in 2025, with autonomous inflows accounting for 64.94% of the total.
- CBN FX sales rose by 126.37% to $8.94bn, while autonomous inflows surged to $72.91bn in 2025, up from $59.29bn in 2024 and $41.80bn in 2023.
- Invisible-related FX utilisation increased to $27.27bn in 2025, and import-related FX demand rose to $19.90bn, both showing strong demand from the industrial and service sectors.
- Fitch, S&P, and Moody’s upgraded Nigeria’s ratings, citing the impact of FX reforms, exchange rate unification, and improved policy coherence.
