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Nigeria’s Forex Market Inflows fall Sharply Amid Rising Foreign Dependence

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Nigeria forex market inflows 2025 dropped 28.1% in June, exposing rising dependence on foreign investors as local dollar sources like CBN and exporters pull back

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Nigeria’s official foreign exchange market recorded a sharp drop in dollar inflows in June 2025, with total supply falling to \$4.84 billion—a 28.1 per cent decline from May’s \$6.74 billion.

Also read: Black Market Dollar To Naira Exchange Rate Today 6th December 2021

Data from FMDQ, analysed by Cordros Securities, shows that the reduction was driven by falling local contributions. Inflows from domestic sources dropped by 61.4 per cent to \$2.11 billion, the lowest in four months, now accounting for just 43.7 per cent of total FX inflows.

Individual contributions fell steeply by 91.6 per cent, while the Central Bank of Nigeria (CBN) reduced its supply by 77.2 per cent. Exporters and importers also pulled back significantly, with a 74.4 per cent drop in their inflows. Non-bank corporate contributions slipped by 17.6 per cent.

Meanwhile, foreign sources of FX increased by 116.8 per cent to \$2.73 billion in June, the highest in more than two years. Analysts attribute this rise to renewed confidence among foreign portfolio investors (FPIs), driven by high interest rates and ongoing foreign exchange reforms.

“The sharp drop in local contributions, especially from the CBN and exporters, suggests that confidence among domestic actors is fragile,” said David Adonri, Vice-Chairman of Highcap Securities. “The rise in foreign inflows is mainly ‘hot money,’ which can reverse quickly.”

Since assuming office, CBN Governor Olayemi Cardoso has reduced direct intervention in the forex market, favouring a market-driven exchange rate. However, the latest data shows that local players are yet to compensate for the central bank’s withdrawal.

Johnson Chukwu, Founder of Cowry Asset Management, echoed concerns about overreliance on foreign funds.

“If foreign investors perceive any risk, whether global or domestic, they will exit, putting renewed pressure on the naira,” he said.

Cordros Securities expects foreign portfolio inflows to remain strong in the near term due to attractive OMO auction rates and increased investor confidence. Still, they warned that global uncertainty or stalled reforms could jeopardise this trend.

“The lingering global trade uncertainties remain a downside risk to inflows from foreign counterparts,” their report stated.

Also read: Dollar To Naira Exchange Rate Today 17 November 2021

Experts say unless Nigeria strengthens domestic FX sources such as non-oil exports and diaspora remittances, the current forex strategy could prove unsustainable.

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FG Begins Fresh Tax Reform Review Ahead of 2027 Budget

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Nigeria begins a tax reform review ahead of the 2027 Finance Bill, with officials targeting implementation gaps, simpler compliance and stronger investment (more…)

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Governor Dauda Lawal woos investors, highlights Zamfara’s economic opportunities at CEO Forum

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Zamfara State Governor, Dauda Lawal, has called for stronger collaboration between government, businesses and investors to unlock private capital and drive inclusive economic growth in the state.

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Lawal made the call while delivering a Special Policy Address at the 2026 CEO Forum organised by the Global Compact Network Nigeria in Lagos.

The forum, held under the theme “Financing a Dignified Future: Aligning Business Action, Policy and Capital,” brought together chief executives, senior government officials, industry leaders, diplomats, trade commissioners and international development partners.

Participants were drawn from key sectors of the economy, including oil and gas, energy, manufacturing, construction and infrastructure.

The governor spoke on the growing competition among states for increasingly selective private capital and the factors that could transform an economic opportunity into an investable proposition.

He explained how his administration was working to bridge the gap between available economic opportunities and investment, with emphasis on building investor confidence while ensuring that investments deliver meaningful outcomes for the people of Zamfara.

According to him, attracting investment requires more than identifying economic opportunities, but also creating the conditions, policies and partnerships capable of giving investors confidence to commit capital.

The forum provided a platform for business leaders, government officials and investors to examine ways of aligning business strategies, public policies and capital deployment to unlock productive investment.

Discussions also focused on identifying businesses, sectors and projects with strong potential but facing difficulties in accessing financing, as well as measures to make such opportunities more attractive to investors.

The organisers also introduced the concept of the “Dignity Dividend,” examining how investment-led growth could translate into better jobs, stronger businesses, increased productivity, local value creation and broader economic participation.

Another key component of the forum was the identification of actionable commitments and partnerships that participating institutions could advance over the next six to 12 months.

Notable speakers at the event included chief executives of First Bank Group, Access Bank, Flour Mills of Nigeria Plc, Nigeria Economic Summit Group, Nigerian Exchange Group, Chellarams Plc, SecureID Group and Greenwich Merchant Bank Plc, among others.

The organisers said the session would culminate in a live showcase of the Business Value and Sustainability Platform (BVSP), described as a standing coalition of business, capital and policy actors designed to sustain the dialogue.

The platform is also expected to contribute to shaping Nigeria’s private-sector engagement during the United Nations General Assembly High-Level Week.

The governor’s participation in the forum comes as Zamfara seeks to strengthen its economic base, attract productive investment and create opportunities that can support sustainable livelihoods and wider participation in the state’s economy.

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Fuel subsidy debate: Between economic reform and political expediency

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Atiku petrol subsidy plans have reignited Nigeria’s 2027 debate as the ADC candidate promises relief while the Presidency demands clarity

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