Nigeria’s foreign exchange (FX) market witnessed a notable surge in inflows during July 2025, driven primarily by increased activity from non-bank corporate entities. Data from the Central Bank of Nigeria (CBN) indicates that overall FX inflows grew by 24 percent compared to the previous month, highlighting a shift in the dynamics of foreign currency supply.
Unlike previous periods where Foreign Portfolio Investors (FPIs) dominated FX inflows through investments in Nigeria’s capital markets, July saw non-bank corporates—comprising manufacturing firms, exporters, and service providers—taking a leading role in bringing foreign currency into the economy. This change reflects growing confidence among domestic companies engaging in cross-border trade and investment activities.
Experts attribute the rise in non-bank corporate FX inflows to improved export earnings, increased foreign direct investment in productive sectors, and government policies aimed at encouraging local businesses to repatriate foreign exchange through official channels. The trend also suggests a gradual diversification of FX sources beyond portfolio investments, which are often more volatile and subject to global market swings.
Meanwhile, foreign portfolio investments saw a comparatively moderate growth, reflecting continued caution among international investors amid global economic uncertainties and fluctuating commodity prices. Analysts believe that the growing prominence of non-bank corporates in FX inflows could help stabilise the naira exchange rate by reducing reliance on short-term capital movements.
The Central Bank has welcomed these developments, noting that a more diversified and stable FX supply is critical for maintaining monetary stability and supporting Nigeria’s economic recovery. The CBN has also reiterated its commitment to creating an enabling environment for exporters and local businesses to thrive and contribute to foreign exchange earnings.
As Nigeria continues to navigate complex external economic pressures, the shift in FX inflow patterns underscores the importance of strengthening domestic production and export capacity to enhance foreign currency reserves.