Nigeria’s net foreign exchange (forex) inflows reached $17.39 billion in Q4 2024, marking a significant increase driven by strong autonomous inflows. These inflows were mainly propelled by foreign investments, remittances, and export earnings, contributing to a 20.62% growth in total forex inflows, which rose from $23.06 billion in Q3 to $27.81 billion. Autonomous inflows saw a remarkable surge of 47.55%, climbing from $11.03 billion in Q3 to $16.27 billion in Q4, although inflows through the Central Bank of Nigeria (CBN) experienced a slight decline of 4.05%.
Despite the rise in forex inflows, the report also showed a significant increase in foreign exchange outflows, which surged by 31.37% to $10.42 billion in Q4. Outflows through the CBN grew by 22.98%, while autonomous sources saw a massive 129.59% increase. Nevertheless, the net forex inflows increased by 14.99% to $17.39 billion, with autonomous inflows accounting for the majority of the growth, rising from $10.40 billion in Q3 to $14.84 billion in Q4.
On the domestic front, Nigeria’s economy saw notable growth, expanding by 3.84% in Q4 2024 to reach a GDP of N22.61 trillion. The growth was largely driven by the non-oil sector, particularly the financial and insurance subsectors. Other major sectors also recorded broad-based growth, although the electricity and gas sector contracted by 5.05% due to rising tariffs and infrastructure challenges. The oil sector grew more slowly at 1.48%, impacted by a fall in crude oil prices, though increased production helped mitigate the slowdown.
The non-oil sector continued to outpace the oil sector, expanding by 3.96% compared to 3.37% in Q3 2024, contributing significantly to overall GDP growth. Key drivers included the financial sector, which benefited from fintech adoption and increased capital market investments, and the ICT sector, which thrived due to digital services expansion. Additionally, sectors such as transportation, logistics, and crop production played a vital role in supporting economic expansion.
Source: Leadership