Economy
Nigeria’s Forex Market Inflows fall Sharply Amid Rising Foreign Dependence
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
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.
The governor distributed official vehicles to judicial officers and said about 90 per cent of court rehabilitation projects across the state had been completed
The Oando chief says transparency and stronger institutions are essential for African businesses seeking long-term international capital
Economy
Governor Dauda Lawal Join VP Shettima’s Delegation to Benin Republic, Seeks Industrial Model to Boost Zamfara’s Agric Zones
Zamfara State Governor Dauda Lawal has described the Glo-Djigbé Industrial Zone (GDIZ) as a practical blueprint for transforming Zamfara state’s agricultural sector, as he joined Vice President of Nigeria, Senator Kashim Shettima and five other governors on a working visit to the Benin Republic industrial hub on Friday.
The delegation toured the 1,640-hectare public-private industrial platform, inspecting integrated textile and agro-processing facilities where locally produced cotton is converted into yarn, fabric and finished garments while cashew and soybean are processed for domestic and export markets. GDIZ, developed by the Beninese government and ARISE Integrated Industrial Platforms, has created more than 25,000 jobs since production began in 2021.
For Governor Lawal, who presides over an agrarian state with vast arable land and a strong comparative advantage in crop production, the visit presented an opportunity to draw direct lessons for Zamfara’s agricultural transformation agenda.
“Zamfara holds a strong comparative advantage in agriculture. We grow all crops in the state, we are not limited to soybeans. We have the land and it is fertile,” Governor Lawal had told global investors at the Africa Investment Forum in Morocco last November, where he signed a strategic Memorandum of Understanding with the Ministry of Finance Incorporated (MOFI) to drive large-scale agricultural transformation under the INTEGRANIUM Initiative.
The GDIZ visit is aimed at strengthening the implementation of Nigeria’s Special Agro-Industrial Processing Zones Programme, drawing practical lessons from Benin’s approach to agricultural value addition, industrial infrastructure, investment mobilisation and export-oriented production. Particular attention was given to the textile park’s integrated production system covering cotton spinning, weaving, fabric processing and garment manufacturing. Governor Lawal believes that Zamfara State can benefit from the $370 billion worth of global cotton valuation by ensuring Zamfara grows more cotton and can also lead the charge by reviving moribund textile manufacturing hubs and value chain which could generate millions of jobs, expand non-oil exports and stimulate economic activities.
Governor Lawal’s participation in the delegation aligns with Zamfara’s recently launched 10-year Development Plan (2025–2034), which envisions the state becoming “a benchmark for transformative economic growth, not merely for Nigeria, but the continent of Africa”. The plan prioritises maximising Zamfara’s agricultural and natural resource strengths through partnerships, mechanised farming, agro-processing and value chains to create jobs, improve food security and reduce poverty-driven insecurity.
Governor Lawal was also in company of other state Governors like; Hope Uzodimma (Imo), Caleb Mutfwang (Plateau), AbdulRahman AbdulRazaq (Kwara), Dikko Radda (Katsina), and Umar Namadi (Jigawa). The visit is expected to inform the development of garment-training facilities and dedicated processing infrastructure near agricultural production communities across Nigeria.
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