Nigeria’s FX inflows fell sharply to $2 billion in November, marking the lowest in 16 months.
This decline highlights persistent pressure on the naira, even though the Central Bank of Nigeria (CBN) increased interventions.
Nigeria’s FX Inflows Hit 16-Month Low
According to FMDQ data, inflows dropped 67% from $6.1 billion in October to $2 billion.
Moreover, FBNQuest analysts noted that this represents the weakest supply since July 2024, when inflows stood at $1.9 billion.
Tight liquidity and strong demand drove volatility, which caused the naira to slip 1.3% to ₦1,446.90.
Offshore Investors Stay Away
Meanwhile, offshore investors largely stayed away, with foreign portfolio investment (FPI) inflows falling to $593 million.
This figure fell from $3.5 billion in October, marking the lowest level since April 2025.
Furthermore, 97% of FPI inflows originated from offshore fixed-income investments, showing limited foreign investor participation.
Foreign direct investment (FDI) also dropped sharply to $10.4 million from $221 million due to insecurity concerns.
Similarly, other corporate inflows fell 67%, forcing the FX market to rely more heavily on CBN interventions.
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To cushion liquidity shortfalls, the central bank increased sales to $318 million in November from $106 million in October.
Domestic Strain And Seasonal Pressures
At the same time, domestic corporate FX supply fell from $683 million to $443 million, adding strain to the market.
Additionally, remittances and contributions from exporters and individuals declined 42%, while personal remittances dropped 76%.
Nigeria’s reserves rose slightly to $45.1 billion, which helped stabilise the naira in daily trading.
Analysts warn that festive-season spending may intensify demand pressure, keeping volatility elevated.
However, stronger reserves and rising diaspora remittances could provide crucial support to the FX market.
FBNQuest emphasised that renewed demand is likely, but liquidity should remain manageable due to these supports.
Investors will likely watch inflows closely in December, especially from foreign portfolio and corporate sources.
Consequently, the coming weeks will test the naira’s stability as market pressures and festive demand converge.
Overall, Nigeria’s FX market remains fragile, and the CBN’s interventions play a critical role in maintaining short-term stability.
