FRI SEPT 05 2025-theGBJournal| Total inflows into the Nigerian Foreign Exchange Market (NFEM) fell by 26.9% m/m to US$2.80 billion in August (July: US$3.83 billion), reflecting declines across both foreign (38.0% of total) and local (62.0% of total) sources, according to FMDQ data.
Foreign inflows dropped to a four-month low of USD1.06 billion (-61.0% m/m), driven largely by weaker participation from FPIs (-65.8% m/m) and FDIs (-25.2% m/m), partly cushioned by higher accretion from other corporates (+165.5% m/m).
On the domestic front, inflows contracted by 17.9% m/m to USD1.74 billion, as declines from exporters/importers (-32.8% m/m) and non-bank corporates (-32.7% m/m) outweighed sharp increases from individuals (+413.8% m/m) and the CBN (+118.9% m/m).
In the near term, we expect foreign exchange inflows from both local and foreign sources to remain strong, surpassing 2024 levels (2024FY average: US$2.51 billion), driven by improving market confidence and still-attractive naira yields for foreign portfolio investors (FPIs).
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