Nigeria’s foreign exchange inflows recorded a significant slowdown, falling by roughly 33% week-on-week to reach $1.1 billion, according to a market update released by Coronation Merchant Bank Limited.
The financial institution’s research division disclosed in its latest report that U.S. dollar inflows through the Nigerian Foreign Exchange Market (NFEM) declined from $1.64 billion in the preceding week to $1.10 billion.
Despite the steep drop, foreign investors continued to dominate supply activities, sustaining market confidence and supporting the naira’s relative stability amid heightened demand pressures.
Coronation’s data showed that foreign portfolio investors (FPIs) remained the largest contributors, accounting for 63.1% of total inflows—equivalent to $694.9 million. This was followed by exporters (15.3%), non-bank corporates (12.2%), the Central Bank of Nigeria (1.3%), and other sources (8.1%).
However, foreign direct investment (FDI) inflows plummeted sharply to just $0.20 million (0.01%) compared to $122.2 million (7.5%) in the previous week, signaling sustained investor caution toward long-term commitments despite ongoing economic reforms.
Nigeria’s gross external reserves posted a mild increase of 0.22% week-on-week (or $92.5 million), reaching $42.68 billion. The improvement was driven by moderate inflows and limited outflows during the review period.
Coronation’s analysts noted that in the absence of any major external shocks or unexpected capital outflows, the exchange rate is likely to maintain its current stability range across official FX windows.
