NEWS
Nigeria’s Net FX Flow Falls 29% as Outflows More Than Double
Nigeria’s Net FX Flow Falls 29% as Outflows More Than Double
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Nigeria’s net foreign exchange flow fell 29 percent month-on-month to $4.94 billion in March 2026 as total FX outflows more than doubled.
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CBN data showed outflows jumped from $2.50 billion in February to $5.54 billion in March, while total inflows stood at $10.49 billion.
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Despite the monthly decline, March’s net FX flow remained 38% above the $3.58 billion recorded in the same month of 2025.
August 17, () — Nigeria’s net foreign exchange flow through the economy fell 29% to $4.94 billion in March 2026, marking the lowest monthly level since December 2025.
This was disclosed in the Central Bank of Nigeria’s Q1 2026 Statistical Bulletin, which showed that net FX flow declined from $6.98 billion recorded in February.
The March figure, however, remained higher than the $3.58 billion recorded in March 2025, representing a 38 percent year-on-year increase.
The monthly decline was largely reflected in the sharp increase in foreign exchange outflows during the period.
Total FX inflows into the Nigerian economy stood at $10.49 billion in March, down from $12.41 billion in January and $9.49 billion in February.
However, total outflows increased sharply to $5.54 billion from $2.50 billion in February.
The combination of lower inflows and significantly higher outflows resulted in the $4.94 billion net FX flow recorded during the month.
The CBN did not explain the month-on-month decline.
CBN channel turns negative as autonomous sources rise
The CBN data also showed a significant divergence between FX flows through the apex bank and autonomous sources.
Net FX flow through the CBN turned negative at $1.66 billion in March, compared with positive net flows of $3.09 billion in January and $1.34 billion in February.
This means more foreign exchange flowed out through the CBN channel than came in during the month.
In contrast, autonomous sources recorded a net FX inflow of $6.60 billion in March, up from $5.64 billion in February.
The stronger autonomous-source inflow therefore provided a significant cushion against the negative flow recorded through the CBN.
The figures highlight the growing importance of FX transactions outside the CBN channel in determining Nigeria’s overall foreign exchange position.
March decline follows wider FX flow trends
Foreign Exchange market. Photo credit: deVere Group.The March decline comes against the backdrop of significant changes in Nigeria’s foreign exchange market over the past two years, following reforms aimed at improving price discovery and increasing transparency.
CBN data showed that Nigeria recorded total FX inflows of $109.86 billion in 2025, up 13.81 percent from $96.53 billion in 2024.
The increase reflected stronger flows through autonomous sources, even as aggregate FX outflows also rose.
In the first quarter of 2025, Nigeria recorded net FX inflows of about $15.20 billion, while total FX inflows rose 18.68 percent year-on-year to $28.92 billion in the period.
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The latest March figures therefore point to a short-term moderation rather than a reversal of the broader increase in FX flows recorded over the past year.
For the Nigerian economy, however, the sharp rise in March outflows remains significant. Higher outflows can reduce the amount of foreign exchange retained within the domestic financial system, particularly when inflows fail to grow at the same pace.
The sustainability of Nigeria’s FX position will therefore depend not only on attracting more foreign currency into the economy, but also on how much of those inflows remain available after external payments and other foreign exchange demands are met.
