The net foreign exchange inflows into Nigeria’s economy increased by 44.8% year-on-year, reaching $41.89 billion in the first eleven months of 2024, compared to $28.92 billion in the same period of 2023. This growth was part of a broader increase in forex inflows, which rose by 27.5% to $77.16 billion from $60.54 billion. However, outflows also saw an uptick, rising 11.5% to $35.27 billion, up from $31.62 billion the previous year.
A closer look at the data reveals that inflows from autonomous sources climbed 8.2% to $41.31 billion, while outflows from these sources surged 142% to $7.44 billion. Despite the higher inflows, net forex through autonomous sources decreased by 3.4%, dropping to $33.88 billion. On the other hand, inflows through the Central Bank of Nigeria (CBN) showed significant improvement, with a 60% increase to $35.85 billion. Outflows through the CBN, however, fell by 2.5%, leading to a remarkable 299% rise in net forex inflows through the Bank, which reached $8.02 billion compared to a net outflow of -$6.17 billion in 2023.
Despite these overall gains, the CBN reported a decline in net forex inflows for November 2024. According to its latest monthly report, the decline was due to reduced inflows through the Bank. Total forex inflows for November amounted to $8.40 billion, down from $9.15 billion in October. On the other hand, outflows dropped sharply from $4.29 billion in October to $2.45 billion in November.
The data highlights the ongoing volatility in Nigeria’s foreign exchange market, with both inflows and outflows showing significant fluctuations. While the overall year-to-date figures reflect a strong growth in forex inflows, the decrease in November underlines the challenges faced by the Central Bank in maintaining a stable forex environment.
SOURCE: VANGUARD