Dollar inflows into Nigeria’s official foreign exchange market fell sharply last week as foreign investor participation weakened, according to data from the Nigeria Foreign Exchange Market. Total FX inflows declined by 20.67% week on week to $593.70 million, down from $748.40 million previously, with a Coronation Merchant Bank report pointing to significant deterioration in external inflows.
Foreign portfolio investment plunged 72.91% to $46 million from $169.8 million, while foreign direct investment dropped 81.87% to $7 million from $38.6 million, leaving foreign sources accounting for just 17.05% of total inflows despite recent FX reforms.
With offshore participation fading, local sources supplied 82.95% of total FX inflows, led by individuals with $165.1 million, followed by the Central Bank of Nigeria at $128.0 million and exporters and importers at $115.6 million.
The naira appreciated by 0.88% week on week at the official window to close at N1,430.85/$, supported by sustained CBN intervention, but weakened to around N1,490/$ in the parallel market amid lingering demand pressures. Nigeria’s external reserves edged up 0.58% to $45.50 billion, though analysts warned that exchange-rate stability remains fragile without a sustained rebound in autonomous foreign inflows.