Private Dollar Inflows Boost Nigeria’s Forex Market as Portfolio Investments Reach $6.3bn
Nigeria’s foreign exchange market has recorded stronger dollar inflows, supported by foreign portfolio investments, private-sector transactions and remittances from Nigerians living abroad.
The Central Bank of Nigeria (CBN) disclosed that net foreign portfolio investment inflows stood at $6.3 billion between January and August 2026, providing a significant boost to the supply of foreign currency in the market.
The figure was disclosed by CBN Deputy Governor, Muhammad Sani Abdullahi, during the 38th Seminar for Finance Correspondents and Business Editors in Abuja.
According to the apex bank, the growing contribution of non-CBN sources to the foreign exchange market has helped improve liquidity and reduced the need for frequent direct intervention by the central bank.
Autonomous Sources Dominate FX Inflows
Abdullahi said Nigeria recorded total foreign exchange inflows of $10.8 billion in July 2026, with autonomous sources accounting for $7.3 billion, representing almost 68 per cent of the total.
The development highlights the increasing role of private-sector and other non-central-bank channels in supplying dollars to the Nigerian economy.
The CBN official said the improved flow of foreign currency had contributed to greater stability in the FX market.
Remittances Support Dollar Supply
Diaspora remittances have also remained an important source of foreign exchange.
According to the CBN, approximately $950 million came into Nigeria through international money transfer operators in July 2026.
The inflows from remittances, portfolio investments and other autonomous sources have helped strengthen the country’s overall external position.
Nigeria’s gross external reserves had risen to $55.6 billion as of September 11, 2026, according to the apex bank.
Gap Between Official and Parallel Rates Narrows
The improvement in foreign exchange liquidity has also coincided with a significant reduction in the difference between the official exchange rate and the rate in the parallel market.
The CBN said the gap had narrowed to less than 2.2 per cent, compared with an average spread of 68.2 per cent recorded between January and May 2023.
The central bank attributed the improved market conditions partly to tighter monetary policy and stronger liquidity management.
However, the CBN stressed that increased FX liquidity does not mean all foreign exchange challenges affecting households and businesses have been resolved.
The apex bank said maintaining the progress would require continued policy discipline, stronger investment flows and further development of sustainable sources of foreign exchange.
The latest figures suggest that private-sector dollar inflows are playing an increasingly important role in Nigeria’s foreign exchange market, alongside portfolio investments and diaspora remittances.
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