Nigeria’s Net FX Flows Hit $22.5bn in Q2 2026, Highest Since 2019, Despite Declining Dollar Inflows.

Nigeria’s Net FX Flows Hit $22.5bn in Q2 2026, Highest Since 2019, Despite Declining Dollar Inflows.

Nigeria’s net foreign exchange (FX) flows rose to $22.50 billion in the second quarter of 2026, marking their highest level since the fourth quarter of 2019, as a sharper decline in dollar outflows offset a reduction in total foreign exchange inflows.

According to the Central Bank of Nigeria’s (CBN) second quarter 2026 Statistical Bulletin, net FX flows increased by 5.5 per cent from $21.33 billion in the first quarter to $22.50 billion in the second quarter.

The development indicates an improvement in the balance between foreign currency entering and leaving the Nigerian economy, although it does not necessarily translate into an equivalent increase in the country’s external reserves.

Declining Dollar Outflows Drive Improvement

The CBN figures show that Nigeria recorded total foreign exchange inflows of $31.43 billion in the second quarter, compared with $32.39 billion in the preceding quarter.

However, total FX outflows declined more significantly, falling from $11.05 billion in the first quarter to $8.93 billion in the second quarter.

The $2.12 billion reduction in outflows exceeded the $960 million decline in inflows, resulting in a net improvement of approximately $1.17 billion in the country’s foreign exchange position.

Monthly figures also showed a consistent increase in net FX flows throughout the quarter. Nigeria recorded $6.53 billion in April, $7.91 billion in May and $8.06 billion in June, which was the strongest monthly performance during the period.

Despite the improvement, the second-quarter figure remained below the historical peak of $31.93 billion recorded in the third quarter of 2014 and the $25.08 billion registered in the fourth quarter of 2019.

Autonomous Sources Support Foreign Exchange Supply

The CBN data also highlighted the contribution of autonomous sources to Nigeria’s foreign exchange flows.

Autonomous sources refer broadly to foreign exchange transactions conducted outside the Central Bank’s direct channels, including transactions involving other market participants.

Data reported by Nigerian financial news outlets indicate that autonomous sources accounted for a substantial share of foreign exchange activity during the second quarter.

Net FX flows through these channels stood at $6.70 billion in April, declined to $5.70 billion in May and recovered to $6.74 billion in June.

By comparison, net flows through the CBN recorded an outflow of approximately $176.28 million in April before recovering to inflows of $2.21 billion in May and $1.32 billion in June.

These figures underscore the importance of non-CBN channels in Nigeria’s foreign exchange market and highlight the changing sources of dollar supply within the economy.

Portfolio Investment Records Significant Growth

The improvement in net FX flows also coincided with stronger foreign portfolio investment.

According to previously reported CBN data, portfolio investment increased by 45 per cent to $6.51 billion in the second quarter of 2026, up from $4.49 billion in the first quarter.

Portfolio investment involves foreign investors purchasing financial assets such as government securities and shares. These transactions can support foreign currency availability when investors bring dollars into Nigeria to acquire local assets.

However, portfolio investments can be volatile because investors may withdraw their funds in response to changing economic conditions, interest rates, exchange rate expectations or global financial developments.

Meanwhile, foreign direct investment remained a concern following a sharp decline in the first quarter of 2026, according to figures from the National Bureau of Statistics.

Foreign direct investment generally involves longer term commitments, including investments in businesses, production facilities and other productive activities. Its recovery is important for strengthening Nigeria’s capacity to attract more stable foreign capital.

What the Figures Mean for Nigeria’s Economy

The increase in net foreign exchange flows could provide some support for Nigeria’s foreign exchange market by improving the balance between dollar inflows and outflows.

Sustained improvements in this balance may help ease pressure on foreign currency availability, support businesses that depend on imported inputs and contribute to more orderly foreign exchange market conditions.

However, the latest figures should not be interpreted as proof that Nigeria’s currency challenges have been resolved.

Net FX flows measure the difference between reported foreign exchange inflows and outflows. They are distinct from external reserves, which represent the foreign assets held by the country’s monetary authorities.

The sustainability of the improvement will depend on several factors, including the consistency of foreign currency inflows, the management of external payments, investor confidence and the recovery of longer term investment.

Nigeria’s ability to attract productive foreign investment while maintaining stable sources of foreign exchange earnings will remain important to the country’s broader economic outlook.

The second-quarter performance therefore represents a notable improvement in Nigeria’s net foreign exchange position, but maintaining that progress will require continued attention to the quality, stability and composition of capital entering the economy.