Data from the FMDQ platform indicates that total forex inflows into Nigeria’s official market (NFEM) jumped by 53.3%, rising from $3.09 billion in December 2024 to $4.74 billion in January 2025.
This increase was driven primarily by a sharp rise in foreign investments:
- Foreign inflows surged by 192.1%, reaching $2.31 billion (up from $790.3 million in December), marking the highest level in nearly two years.
- Foreign portfolio investments (FPI) played a major role in boosting the supply of dollars, as global investors found Nigeria’s financial market attractive due to high returns.
- Corporate and Foreign Direct Investment (FDI) inflows declined, with corporate inflows dropping by 45.5%, and FDI declining by 35.5% compared to the previous month.
- Local forex inflows increased slightly by 5.6%, reaching $2.43 billion, supported by contributions from exporters, importers, and the CBN.
With improved FX supply, the naira appreciated by 4.3% in January, strengthening from N1,538.25/$1 in December 2024 to N1,474.78/$1 by January 31, 2025. However, due to CBN’s interventions in the forex market, Nigeria’s foreign reserves dropped by 4.5% to $39.04 billion, reflecting higher demand for forex and external debt payments.
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