SUN MAY 10 2026-theGBJournal| Total inflows into the Nigerian Foreign Exchange Market (NFEM) fell sharply by 30.1% month-on-month to USD2.86 billion in April 2026, down from USD4.09 billion recorded in March, according to data from the Financial Markets Dealers Quotations (FMDQ).
The decline highlights growing pressure on Nigeria’s foreign exchange liquidity position, as both domestic and foreign sources recorded significant slowdowns during the month.
Local inflows accounted for 42.8% of total FX inflows in April but dropped substantially by 38.7% month-on-month to USD1.22 billion, compared to USD2.00 billion in March.
The downturn was largely driven by weaker contributions across all major domestic segments.
The most significant contraction came from the Central Bank of Nigeria (CBN), whose inflows plunged by 83.0% month-on-month, signaling a sharp reduction in official market interventions.
Inflows from exporters and importers also weakened by 19.3%, reflecting softer trade-related FX supply amid ongoing macroeconomic and external sector challenges.
In addition, non-bank corporates recorded an 18.2% decline in FX inflows, while inflows from individuals fell by 33.3% during the period, further weighing on overall market liquidity.
Foreign inflows, which remained the dominant source of FX supply with a 57.2% share of total inflows, also recorded a notable decline.
Foreign inflows dropped by 21.9% month-on-month to USD1.63 billion in April, compared to USD2.09 billion in March.
The decline in foreign participation was primarily driven by reduced inflows from Foreign Portfolio Investors (FPIs), which declined by 17.8% month-on-month, suggesting weaker investor appetite amid persistent concerns around exchange rate volatility, monetary policy uncertainty, and broader macroeconomic risks.
Foreign Direct Investment (FDI) inflows recorded the steepest decline among foreign sources, plunging by 78.9% month-on-month, while inflows from other corporates fell by 54.6%, underscoring softer external investor confidence and reduced capital importation into the economy.
Overall, the April performance reflects a broad-based weakening in FX supply conditions across Nigeria’s foreign exchange market, with declining participation from both domestic and international players potentially increasing pressure on liquidity and exchange rate stability in the near term.
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