CBN Records $6.3bn Portfolio Inflows as FX Supply Strengthens Naira

Nigeria attracted $6.3 billion in net foreign portfolio investment inflows between January and August 2026, strengthening foreign-exchange liquidity and reducing the Central Bank of Nigeria’s need to intervene directly in the FX market.

The latest figure was disclosed by CBN Deputy Governor Muhammad Sani Abdullahi at the 38th Seminar for Finance Correspondents and Business Editors in Abuja.

Abdullahi said the improvement in foreign-exchange supply was increasingly being driven by autonomous sources, including private-sector transactions, portfolio investments and diaspora remittances.

According to him, Nigeria recorded $10.8 billion in total foreign-exchange inflows in July alone, with autonomous sources accounting for $7.3 billion, or almost 68% of the month’s total.

The development marks a significant shift in the composition of foreign-exchange supply, as the CBN has sought to reduce the extent to which the central bank itself has to supply dollars to the market.

The deputy governor also disclosed that inflows through international money transfer operators reached approximately $950 million in July, highlighting the continued importance of diaspora remittances to Nigeria’s FX market. 

The stronger inflow position has coincided with a substantial improvement in the country’s external reserves.

Gross reserves stood at $55.6 billion as of September 11, according to the CBN, putting the reserve position considerably above the level recorded at the beginning of the year.

The improvement has also occurred alongside increased activity in the official FX market.

FMDQ data showed that total turnover across Nigeria’s FX spot and derivatives markets reached $2.63 billion in the week ended September 25, representing an 11.02% increase from the $2.37 billion recorded in the preceding week.

Spot transactions accounted for almost the entire market, rising 10.62% to $2.59 billion, while derivatives turnover increased 46.42% to $39.21 million. 

The naira has remained relatively stable around the N1,330/$ level amid the improvement in dollar liquidity.

At the Nigerian Autonomous Foreign Exchange Market, the currency closed at approximately N1,331/$ on September 30, according to market reports.

The stronger FX position comes after a series of reforms by the CBN aimed at improving price discovery, transparency and liquidity in the foreign-exchange market.

It also comes as the central bank attempts to reconnect monetary policy with market conditions after cutting the Monetary Policy Rate from 27.5% to 23% at its September meeting. 

For businesses, increased autonomous dollar supply could have implications for importers, manufacturers and companies with foreign-currency obligations. More predictable access to FX can reduce the uncertainty associated with sourcing dollars for imports and international payments.

However, a substantial portion of recent inflows has come from portfolio investment, meaning the sustainability of some of the flows will remain dependent on investor sentiment, interest-rate differentials and global financial conditions.

The CBN’s latest figures nevertheless point to a foreign-exchange market increasingly being supplied by private-sector and autonomous sources rather than relying predominantly on central-bank intervention.