Total Dollar Inflows to Official FX Window Hits $26.4bn in H1

The total dollar inflows into the official window of the Nigerian foreign exchange (FX) market rose to $26.40 billion, in the First Half (H1) of 2025, more than 80% of the 2024 Full year (FY) figure.

This strong performance was primarily driven by sustained Foreign Portfolio Investment (FPI) inflows of $8.89bn – higher than the $8.53bn received throughout 2024, data from FMDQ shows.

“This reflects growing investor confidence, supported by foreign exchange market reforms, attractive fixed income rates, enhanced policy credibility by the Central Bank of Nigeria (CBN), and a generally stable macroeconomic environment,” Meristem Securities analysts said in a ‘Half Year Outlook’ report released Friday July 19^th.

The report noted that exporters played a key role, contributing about 30% to total non CBN dollar inflows in the First Half of 2025, as they responded positively to more market-reflective exchange rates.

Additionally, inflows from non-bank corporates, which contributed 28% of total inflows ex CBN, further bolstered FX supply.

The CBN ramped up its market intervention by +205.19% year-on-year (YoY) to $3.91bn in H1:2025 (from $1.28bn in H1:2024), underscoring its continued efforts to enhance liquidity and stabilise the FX market.

The Nigerian currency (Naira) averaged NGN1549.74/USD in H1, 2025, with volatility easing to an average of 0.60% (vs. 6.12% in H1, 2024), according to Meristem data.

Parallel market premium narrowed to N15.74, well below the year-to-date average of N33.13.

Nigeria’s gross Central Bank dollar reserves stood at $37.8 billion as at July 17 2025, down 7.4% year-to-date, according to data from the CBN website.

Capital outflows, however also increased in the First Half of 2025, reaching $23.72 billion compared to $13.64 billion in the same period of 2024 and 82% of total 2024 outflows.

This was due to persistent demand for imports, external debt servicing, and outbound investments by domestic entities.

Despite this, the overall net flow position improved significantly to $3.51 billion in H1, 2025, up from $860.40 million in H1, 2024.

“This improvement reflects renewed international investor confidence, moderated outflows, and continued strong participation from local market players,” Meristem said.

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