CBN Dollar Push Lifts FX Inflows in December
Atume Terfa
Nigeria’s foreign exchange market saw a notable year-end lift in December 2025, with dollar inflows rising by 38 per cent as the Central Bank of Nigeria (CBN) intensified its intervention to ease liquidity pressures, according to data from FMDQ Securities Exchange.
Total FX inflows for the month climbed to approximately $2.8 billion, reversing the sharp slowdown recorded in November. While the rebound points to renewed activity across the market, analysts caution that December’s supply still ranks among the weakest levels seen in the past 16 months, underscoring the fragile nature of FX liquidity.
At the heart of the recovery was the CBN’s more aggressive presence in the FX space. The apex bank’s dollar sales nearly doubled month-on-month, rising to about $654 million in December from roughly $318 million in November, a move aimed at easing dollar shortages and stabilising trading conditions.
Analysts at FBNQuest noted that the increase in inflows was largely driven by these interventions, which helped cushion the impact of muted offshore investor activity — typically subdued toward the end of the year. Foreign portfolio inflows edged up by 7 per cent to around $632 million, but remained well below the peaks recorded earlier in 2025.
A closer look at the inflow mix showed encouraging gains across several segments. Foreign direct investment (FDI) rose sharply, more than quadrupling to about $50 million in December. Inflows from exporters and importers also strengthened, jumping 49 per cent to roughly $683 million, while individual remittances surged by 88 per cent to around $275 million, reflecting stronger diaspora activity during the festive season.
Despite the stronger inflows, the naira remained largely stable. In the official market, the currency traded at around ₦1,419.71/$1, only slightly weaker than the previous session, while the parallel market rate hovered near ₦1,490/$1.
Meanwhile, Nigeria’s external reserves posted a modest increase, rising to $45.64 billion by early January 2026, providing additional support for FX market stability.
Market watchers say the improved liquidity aligns with broader CBN reforms designed to deepen transparency and efficiency. Measures such as the Electronic Foreign Exchange Matching System and clearer trading rules have enhanced price discovery and helped narrow the gap between official and parallel market rates.
Over the course of 2025, these reforms coincided with a strong rebound in foreign capital. According to CBN Governor Olayemi Cardoso, net capital inflows reached about $20.98 billion in the first ten months of the year — a 70 percent increase from 2024 and a dramatic 428 percent jump compared with 2023.
Looking into 2026, analysts believe easing inflation pressures and a potentially more accommodative global monetary environment could draw stronger offshore investor interest. However, they stress that sustained FX inflows will depend largely on policy consistency and the continued credibility of Nigeria’s ongoing market reforms.
