Written by SpringsNewsNG Media Limited | April 4, 2025

Foreign exchange inflow into Nigeria surged by 20.62 per cent in the fourth quarter of 2024, reaching $27.81 billion from $23.06 billion in the previous quarter, according to the latest Economic Report released by the Central Bank of Nigeria (CBN).

A key driver of this growth was the significant boost in inflows from autonomous sources, which rose by 47.55 per cent to $16.27 billion, compared to $11.03 billion in Q3. Meanwhile, foreign exchange inflows through the CBN dipped by 4.05 per cent, settling at $11.54 billion from $12.03 billion in the preceding quarter.

“The economy recorded a higher net foreign exchange inflow, driven largely by inflow through autonomous sources,” the report stated.

The report also noted a sharp rise in total FX outflows, which climbed by 31.37 per cent to $10.42 billion. This comprised $8.99 billion from the CBN and $1.43 billion from autonomous sources — the latter marking a steep 129.59 per cent increase.

Despite this rise in outflows, Nigeria recorded a net positive FX inflow of $17.39 billion, representing a 14.99 per cent increase from $15.13 billion in Q3.

Market activity also surged, with average turnover at the Nigerian Foreign Exchange Market (NFEM) rising by 75.17 per cent to $296.16 million, from $169.07 million in the previous quarter. However, this spike in trading activity coincided with a further weakening of the naira. The average exchange rate at the NFEM depreciated by 2.13 per cent to N1,623.26/$, from N1,588.64/$ in Q3 2024.

According to the CBN, this depreciation was largely driven by increased demand pressure in the forex market.

Looking ahead, the central bank remains optimistic about Nigeria’s economic outlook, projecting faster growth in the medium term. It attributed this to expected stability in the exchange rate, improved domestic crude oil production, and the ongoing implementation of policy reforms.

On inflation, the report noted that Nigeria’s headline inflation had declined for two consecutive months, reaching 23.18 per cent in February 2025. The bank anticipates further moderation in inflation beginning in Q1 2025, driven by the lagged effects of its tight monetary policy, expected exchange rate stability, and enhanced security in food-producing regions.

However, the CBN warned of downside risks to inflation control, including potential exchange market pressures, increased money supply, hikes in petrol prices, higher utility tariffs, and insecurity in agricultural zones.

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