Nigeria recorded a net foreign exchange (FX) inflow of $15.20 billion in the first quarter (Q1) of 2025, signaling a stronger FX position powered by sustained market reforms and growing investor and diaspora confidence.
The figures were unveiled during the Nigerian Investor Forum, held on the sidelines of the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington, D.C. According to the data, total FX inflows rose to $28.92 billion, while outflows amounted to $13.72 billion, reflecting improved liquidity conditions and evolving policy frameworks.
A Year-on-Year Boost
Compared to the first quarter of 2024, FX inflows grew by 18.68%, rising from $24.37 billion to $28.92 billion. Outflows also increased by 32.72%, up from $10.34 billion to $13.72 billion, largely due to more liberalised access and greater market confidence.
Despite the rise in outflows, the positive net position highlights Nigeria’s enhanced ability to meet FX demand without excessive Central Bank of Nigeria (CBN) intervention. The CBN noted that its direct market participation has dropped to just 2% of total turnover, compared to previous periods when it was the primary supplier.
Monthly Breakdown
- January 2025:
Inflows – $9.41 billion, Outflows – $4.84 billion, Net Inflow – $4.56 billion - February 2025:
Inflows – $10.64 billion, Outflows – $3.72 billion, Net Inflow – $6.92 billion (Strongest performance of the quarter) - March 2025:
Inflows – $8.88 billion, Outflows – $5.16 billion, Net Inflow – $3.72 billion
Although March posted lower figures than February, the quarter still reflects resilience and maturity in Nigeria’s FX market, which is increasingly able to adjust to seasonal trade pressures and global economic shifts.
A More Transparent Market
The CBN highlighted that recent reforms have led to a more robust and transparent FX spot market, with average monthly turnover rising to $8.1 billion in 2025—up from $5.5 billion in 2024. These improvements stem from ongoing efforts to unify the naira and eliminate longstanding backlogs in FX demand.
Full-Year 2024 Highlights
Looking back, Nigeria attracted $99.4 billion in total FX inflows in 2024—a 44% increase compared to 2023. Net forex flows also rose by 58% year-over-year.
The CBN credited this performance to:
- Enhanced and diversified liquidity sources
- Restoration of FX market functionality
- Elimination of backlogs and suppressed FX demand
- Continuation of forex reform policies
