Nigeria Records $15.2 Billion Net Forex Inflow in Q1 2025 Amid Deepening Market Reforms

Nigeria’s foreign exchange (FX) market posted a net inflow of $15.2 billion in Q1 2025, signaling a sharp boost in liquidity and investor confidence following sustained reforms by the Central Bank of Nigeria (CBN). Total FX inflows reached $28.92 billion while outflows stood at $13.72 billion, according to data unveiled at the Nigerian Investor Forum in Washington DC during the IMF-World Bank Spring Meetings. The figures show a notable improvement from the same period in 2024, reflecting the success of the ongoing naira liberalisation and other policy shifts that are attracting both foreign and diaspora capital into the economy.

Reforms have significantly altered the structure and functioning of Nigeria’s FX market, creating a more transparent and investor-friendly environment. The CBN highlighted a jump in average monthly FX turnover from $5.5 billion in 2024 to $8.1 billion in 2025. At the same time, the apex bank has scaled down its direct intervention, now accounting for just 2% of market turnover—a stark contrast to previous years when it was the dominant supplier. This signals a maturing FX ecosystem where demand and supply dynamics are increasingly market-driven.

Despite a 32.7% rise in outflows compared to Q1 2024, the positive net inflow illustrates Nigeria’s improving capacity to meet forex demand without heavy central bank support. January 2025 saw net inflows of $4.56 billion, February peaked with $6.92 billion, and March closed the quarter at $3.72 billion. These figures not only underline growing foreign participation but also reflect the market’s ability to absorb external shocks and seasonal trade pressures. The steady performance across the quarter underscores increasing stability and resilience in the FX market.

Looking at the broader picture, Nigeria recorded a total FX inflow of $99.4 billion in 2024—a 44% rise from the previous year—underpinning the momentum leading into 2025. CBN attributes this surge to a more liberalised FX framework, diversified inflow channels, and clearing of demand backlogs. The positive net flows, which grew 58% in 2024, are being carried forward into 2025, reinforcing investor trust and pointing to deeper structural gains. With reforms bedding in, Nigeria appears to be turning a corner on FX volatility, bringing long-awaited relief to businesses and international partners.

Source: Nairametrics