Foreign exchange (FX) inflows into Nigeria’s official market declined by about 33% week-on-week to $1.1 billion, according to a new market update released by Coronation Merchant Bank Limited.
The report, published on Monday by the bank’s research division, revealed that dollar inflows through the Nigerian Foreign Exchange Market (NFEM) fell from $1.64 billion the previous week to $1.10 billion, reflecting a temporary slowdown in foreign currency supply.
Despite the drop, the report highlighted that foreign portfolio investors (FPIs) continued to dominate the supply side of the market, accounting for 63.1% (approximately $694.9 million) of total inflows. Exporters contributed 15.3%, non-bank corporates 12.2%, the CBN 1.3%, while other sources made up 8.1%.
However, foreign direct investment (FDI) saw a dramatic decline, falling to just $0.20 million (0.01%) compared to $122.2 million (7.5%) recorded the previous week. Analysts say this sharp drop underscores investor caution toward long-term capital commitments, especially as Nigeria continues to adjust to new economic and regulatory reforms.
Coronation Merchant Bank noted that foreign investors’ confidence remains relatively strong despite short-term fluctuations, largely supporting the stability of the naira exchange rate at the official window.
Meanwhile, Nigeria’s external reserves rose slightly by 0.22% week-on-week (equivalent to $92.5 million) to $42.68 billion, buoyed by moderate inflows and reduced outflows.
“Barring any large external shocks or significant outflows, the official exchange rate is likely to remain stable within the current trading bands across FX segments this week,” the bank stated.
Analysts also noted that the decline in inflows may be linked to seasonal capital outflows, ongoing corporate dollar demand, and cautious investor sentiment ahead of year-end fiscal adjustments.
Despite these headwinds, experts say Nigeria’s FX market fundamentals remain relatively robust, supported by steady portfolio inflows, improved transparency at the Investors & Exporters (I&E) window, and the CBN’s continued intervention efforts.
 inflows into Nigeria’s official market declined by about 33% week-on-week to $1.1 billion, according to a new market update released by Coronation Merchant Bank Limited.){kind=link}