Nigeria’s FX Supply Rises 20.5% to $8.94 Billion in 2025
Nigeria’s foreign exchange supply rose by 20.5% to $8.94 billion in 2025, from $7.43 billion recorded in 2024, pointing to an improvement in the amount of foreign currency supplied through the measured FX supply channel during the year.
The increase represents an additional $1.51 billion in annual supply compared with 2024.
The data are contained in the Central Bank of Nigeria’s 2025 Statistical Bulletin, which tracks foreign-exchange demand and supply among the country’s external-sector statistics.
However, the increase should be viewed in context. Although supply improved year-on-year, the 2025 figure remained considerably below the much higher levels recorded in earlier years of the CBN’s historical series.
The available data also do not provide a detailed sectoral breakdown of the sources of the 2025 supply, making it difficult to establish precisely how much came from oil, non-oil exports, financial institutions, investors, remittances or other sources.
What you should know
Foreign exchange supply represents the foreign currency made available to the FX market through the transactions captured in the CBN’s relevant dataset.
It is different from total FX inflows into Nigeria.
For example, broader CBN external-sector data show that total FX inflows into Nigeria were far larger than the $8.94 billion FX supply figure in 2025. The CBN’s statistics database maintains separate series for FX demand and supply, external reserves, capital flows and balance-of-payments transactions. (Central Bank of Nigeria Statistics)
This distinction matters because the $8.94 billion figure should not be interpreted as the total amount of dollars that entered Nigeria during the year.
Monthly supply was uneven throughout 2025
The annual increase was driven by stronger supply during several months rather than a consistently high level throughout the year.
FX supply stood at $590.64 million in January and $607.63 million in February before increasing to $1.04 billion in March.
The strongest monthly reading came in April, when supply reached $1.65 billion.
Supply subsequently moderated to $838.93 million in May and $676.31 million in June, before reaching $759.02 million in July.
It stood at $677.84 million in August and fell to $399.80 million in September.
October recorded the year’s lowest monthly supply at just $150.10 million, before supply recovered to $638.38 million in November and $910.73 million in December.
The monthly pattern shows that the annual improvement was not evenly distributed across the year.
The increase was relatively modest compared with historical levels
Although a 20.5% annual increase appears significant, the $8.94 billion recorded in 2025 remains low compared with some earlier years in the CBN’s historical series.
This means the latest increase represents an improvement from the weak 2024 level rather than a complete return to the much stronger FX-supply conditions seen during earlier periods.
That distinction is important for assessing whether Nigeria’s foreign-exchange market is undergoing a structural improvement or simply recovering from a weaker base.
FX supply is only one part of Nigeria’s dollar market
Nigeria’s foreign-exchange market is much larger than the supply figure reported in this particular series.
The CBN’s broader external-sector statistics capture other measures, including FX inflows, outflows, utilisation, reserves and balance-of-payments transactions. (Central Bank of Nigeria Statistics)
For instance, broader estimates for 2025 show total FX inflows into Nigeria were above $100 billion.
This means the $8.94 billion supply figure should not be compared directly with total national export earnings or total dollars entering the Nigerian economy.
Each measure captures a different part of the FX ecosystem.
Why the source of FX supply matters
One of the biggest limitations of the latest figure is the absence of a detailed breakdown showing where the supplied foreign exchange originated.
This makes it difficult to determine how much of the increase was associated with:
- Crude oil and gas receipts
- Non-oil exports
- Foreign portfolio investment
- Foreign direct investment
- Diaspora remittances
- Other financial flows
- Central bank or authorised-market transactions
The distinction is important because different sources have different levels of sustainability.
Export earnings and remittances can provide recurring foreign exchange, while portfolio flows can be more sensitive to interest rates, global financial conditions and investor sentiment.
Nigeria’s broader external position improved in 2025
The wider external-sector picture was also stronger in 2025.
The CBN’s 2025 macroeconomic outlook estimated that Nigeria’s goods-account surplus increased to $14.67 billion, from $13.17 billion in 2024, while exports increased to $54.59 billion from $52.97 billion. The CBN attributed the stronger export performance largely to improved crude-oil earnings and increased agricultural commodity and fertiliser exports. (Central Bank of Nigeria)
External reserves also increased to an estimated $45.01 billion at the end of December 2025, compared with $40.19 billion at the end of 2024. (Central Bank of Nigeria)
This provides important context: the increase in measured FX supply occurred alongside broader improvements in Nigeria’s external position.
Higher FX supply can improve market liquidity
More foreign exchange supplied to the market can improve liquidity and make it easier for legitimate demand to be met.
This can reduce the intensity of competition for scarce dollars and potentially help moderate exchange-rate volatility.
However, increased supply does not automatically mean the naira will appreciate.
The exchange rate is determined by the interaction between FX supply and FX demand.
If demand rises faster than supply, the naira can still come under pressure despite higher absolute supply.
Conversely, if supply grows faster than demand, pressure on the currency can ease.
CBN reforms have changed the FX market structure
The increase also comes after several reforms designed to make Nigeria’s FX market more transparent and market-driven.
The CBN says it unified previously segmented FX windows in 2023 and moved toward a willing-buyer, willing-seller model. It has also introduced measures including the Nigerian Foreign Exchange Code and the Electronic Foreign Exchange Matching System. (Central Bank of Nigeria)
These reforms are intended to improve price discovery, reduce arbitrage opportunities and increase confidence in the formal FX market.
The effect on actual dollar availability, however, depends ultimately on the underlying supply of foreign currency and the level of demand.
What investors and businesses should watch
The more important question going forward is whether Nigeria can sustain higher FX supply rather than simply record another year-on-year increase.
Key indicators include:
- Oil production and prices, which remain major sources of export earnings.
- Non-oil exports, particularly agricultural and fertiliser products.
- Diaspora remittances, especially inflows through formal channels.
- Portfolio investment, which can increase FX liquidity but may reverse quickly.
- Foreign-exchange utilisation, which shows how much demand is being placed on available currency.
- External reserves, which provide a buffer against external shocks.
- FX turnover and liquidity, which provide a clearer picture of activity in the formal market.
- The gap between official and alternative FX rates, which can indicate market distortions or improving convergence.
The bigger picture
Nigeria’s $8.94 billion FX supply in 2025 represents a 20.5% improvement from 2024, but the number needs to be interpreted carefully.
The increase is encouraging because it shows that the measured supply of foreign exchange recovered from the previous year’s level.
However, it does not by itself prove that Nigeria has solved its foreign-exchange liquidity problem.
The more important issue is where the additional dollars are coming from, how consistently they can be supplied and whether they are sufficient to meet demand.
Until a detailed source breakdown becomes available, it is difficult to determine precisely what drove the $1.51 billion increase.
For Nigeria, the strongest long-term improvement would come from expanding durable FX sources—particularly oil and non-oil exports and formal remittances—while reducing excessive dependence on volatile capital flows.
That would make higher FX supply more sustainable and give the naira a stronger external foundation.
