Foreign exchange demand from Nigeria’s private sector surged dramatically in 2025, with autonomous foreign exchange outflows jumping by an impressive 165 percent to $16.26 billion, according to the Central Bank of Nigeria (CBN) 2025 Annual Report and Statement of Accounts. The sharp increase highlights growing demand for foreign currency from businesses and investors, even as the country recorded stronger overall foreign exchange inflows.
The report revealed that autonomous FX outflows climbed from $6.14 billion in 2024 to $16.26 billion in 2025, contributing to a 27.83 percent rise in Nigeria’s total foreign exchange outflows, which reached $49.05 billion. Meanwhile, foreign exchange outflows processed directly through the CBN rose only slightly by 1.74 percent to $32.79 billion, accounting for nearly 67 percent of all FX outflows during the year.
Despite the sharp rise in private-sector demand for foreign currency, Nigeria strengthened its external financial position. Total foreign exchange inflows climbed 13.81 percent to a record $109.86 billion in 2025, compared to $96.53 billion the previous year. The increase was largely driven by autonomous inflows, supported by stronger non-oil export earnings, increased capital importation, and higher over-the-counter foreign exchange purchases.
While private-sector inflows expanded significantly, inflows through the Central Bank declined by 2.08 percent to $39.32 billion. The apex bank attributed the decline to reduced receipts from government debt instruments and fewer foreign exchange swap transactions. Even with this slowdown, Nigeria maintained a healthy balance, recording a net foreign exchange inflow of $60.81 billion, an improvement from $58.16 billion in 2024.
The latest figures signal a major shift in Nigeria’s foreign exchange market, where private-sector activity is playing a more dominant role than official interventions. As businesses continue to drive both FX inflows and outflows, analysts believe the trend reflects a more market-oriented foreign exchange system, although the rapid rise in demand for foreign currency could remain a key issue for policymakers seeking to maintain exchange rate stability.
source: punch
