The Central Bank of Nigeria (CBN) sold $1.67 billion in foreign exchange during the first six months of 2026, representing a 69% decline from the $5.41 billion recorded in the corresponding period of 2025.
The reduction of approximately $3.74 billion brought the apex bank’s dollar sales to their lowest first-half level in five years, according to figures from its quarterly statistical bulletin.
Despite the sharp decline in direct dollar sales, Nigeria recorded an increase in foreign exchange inflows, with total receipts rising 12.7% to $63.82 billion from $56.62 billion a year earlier.
A breakdown of the figures showed that autonomous sources, including foreign investments, export proceeds and remittances, contributed $45.5 billion, compared with $38.3 billion in the first half of 2025.
This represents an 18.8% increase with autonomous sources accounting for approximately 71% of total foreign exchange inflows during the period.
The figures indicate that private market participants are playing a larger role in supplying foreign currency to the Nigerian economy, reducing the need for the CBN to sell dollars directly into the market.
Nigeria’s foreign exchange market has undergone significant changes since the introduction of exchange rate reforms in June 2023, when the government moved towards a more market-driven pricing system.
The reforms were intended to improve transparency, attract foreign investment and reduce distortions created by multiple exchange rates.
For businesses, increased dollar availability through commercial banks and other market participants could improve access to foreign currency for imports, international payments and other legitimate transactions.
However, the sustainability of the improvement will depend on the sources of the inflows and whether they can consistently meet demand.
Foreign portfolio investments, for instance, can provide substantial dollar liquidity when Nigerian financial assets offer attractive returns. Such investments can also be withdrawn quickly when international interest rates, exchange rate expectations or investor sentiment change.
This makes export earnings, foreign direct investment and remittances particularly important to the long-term stability of the foreign exchange market.
Nigeria’s total foreign exchange outflows also declined during the period, falling 25.5% to $19.98 billion from $26.85 billion in the corresponding period of 2025.
The combination of higher inflows and lower outflows strengthened the country’s overall foreign exchange position, although these transactions should not be confused with changes in the CBN’s external reserves.
While the reduction in dollar sales suggests less reliance on direct intervention, it does not mean the central bank has withdrawn entirely from the market.
The CBN retains the ability to supply foreign exchange when necessary to address liquidity shortages or excessive exchange rate volatility.
The longer-term test will be whether Nigeria can maintain sufficient dollar supply through exports, remittances and investment inflows without requiring frequent large-scale interventions from the central bank.