… As CBN boosts supply in November
Nigeria has recorded foreign exchange (FX) inflows of $2 billion, its lowest level in 16 months, even as the Central Bank of Nigeria (CBN) increased its supply to the market in November.
The decline underscores the persistent pressure on FX liquidity and the challenges confronting the naira despite ongoing monetary interventions.
According to data from FMDQ, total FX inflows into the Nigerian market fell sharply by 67 percent month-on-month (MoM) to $2 billion, compared with $6.1 billion in October.
Analysts at FBNQuest noted that this represents the weakest FX supply since July 2024, when inflows stood at $1.9 billion. They explained that tight liquidity amid persistent demand pressure heightened volatility in the foreign exchange market throughout November, ultimately leading to a 1.3 percent month-on-month depreciation of the naira, which closed the month at N1,446.90 per dollar.
Read also: Nigeria’s gross FX reserves climbs to highest since 2019
On a daily trading basis, the naira maintained relative stability across different market segments on Monday, supported by an improvement in Nigeria’s external reserves, which rose to $45.1 billion as of December 5, 2025, according to updated CBN figures.
The major driver of the weak FX supply was the sharp drop in inflows from offshore participants. Despite elevated interest rates that ordinarily attract yield-seeking investors, foreign portfolio investors (FPIs) remained largely on the sidelines, resulting in subdued dollar inflows. FPI inflows fell to $593 million from $3.5 billion in October, marking the lowest level since the $546 million recorded in April 2025. A breakdown of the data shows that offshore fixed-income investments accounted for about 97 percent of total FPI inflows, amounting to $575 million.
Foreign Direct Investment (FDI) also remained depressed, declining steeply to $10.4 million from $221 million in the previous month, as investors continued to express concerns over insecurity and Nigeria’s fiscal direction. Other foreign corporate inflows declined by 67 percent month-on-month to about $55 million.
With foreign sources providing limited support, the CBN increased its intervention in the FX market. FX sales by the apex bank more than doubled to $318 million in November from $106 million in October, highlighting the bank’s effort to cushion liquidity shortfalls.
Read also: Nigeria sees biggest jump in FX access ranking on reforms
However, excluding CBN interventions, inflows from domestic sources also weakened. FX supply from domestic corporates declined to $443 million from $683 million. Remittances and FX contributions from exporters, importers and individuals fell sharply, dropping by 42 percent month-on-month to $460 million, while individual remittances plunged by 76 percent to $146 million.
Analysts at FBNQuest warned that demand pressure on the naira is likely to intensify in the coming weeks due to festive-season spending. They added, however, that Nigeria’s stronger reserve position and expected increases in diaspora remittances should help support market liquidity and moderate volatility.
“Looking ahead, we anticipate renewed demand pressure on the naira driven by festive-related activities. However, a stronger reserves position and increased FX diaspora remittances are expected to support market liquidity and help moderate volatility in the exchange rate,” they said.