Nigeria’s demand for foreign exchange dropped sharply by 35.23 per cent to $3.42bn in April 2026, easing pressure on the dollar market and helping the naira record modest gains, according to data from the Central Bank of Nigeria. The decline in demand came as foreign exchange utilisation across several sectors weakened, while the local currency strengthened slightly at the official market.
The naira’s performance reflected the changing dynamics in the foreign exchange market. The monthly average exchange rate improved by 1.38 per cent to N1,361.22 per dollar in April, compared with N1,379.98 in March. At the end of April, the naira closed at N1,374.94 per dollar at the Nigerian Foreign Exchange Market, stronger than the N1,386.72 recorded at the end of the previous month.
Visible imports accounted for 41.92 per cent of total FX utilisation, with industrial activities emerging as the biggest users at 37.44 per cent. Manufactured products accounted for 21.85 per cent, while oil imports and food products represented 20.11 per cent and 14.47 per cent respectively. On the invisible-import side, financial services dominated, accounting for 91.51 per cent of total utilisation, followed by business and transport services.
Despite the lower demand for dollars, activity in the official FX market also slowed, with average turnover falling by 26.97 per cent to $442.54m from $605.93m in March. More significantly, Nigeria’s net FX inflows climbed to $5.85bn in April from $4.16bn a month earlier, largely because outflows fell sharply. Total outflows dropped from $5.54bn to $2.86bn, while the banking system’s net outflow declined substantially from $1.66bn to $180m.
The stronger position was also reflected in Nigeria’s external reserves, which remained broadly stable at $48.32bn at the end of April, compared with $48.35bn in March. The reserves provided about 10 months of import cover, well above the international benchmark of three months. With demand for dollars falling, outflows weakening and net FX inflows improving, pressure on the currency market eased, giving the naira some breathing room and supporting its relative stability during the month.
source: punch
