SUN OCT 12 2025-theGBJournal| Total inflows into the Nigerian Foreign Exchange Market (NFEM) declined by 5.7% m/m to USD3.18 billion in September (August: USD3.37 billion), primarily reflecting the declines in inflows from local sources (44.8% of total inflows).
The figures from FMDQ, shows inflows from local sources dipped by 32.4% m/m to USD1.42 billion (August: USD2.10 billion) due to declines across the Central Bank of Nigeria (CBN) (-54.4% m/m), non-bank corporates (-48.4% m/m) and Exporters/Importers (-3.2% m/m) segments despite the higher accretion recorded in the individuals (+97.3% m/m) segment.
On the other hand, inflows from foreign sources (55.2% of total inflows) increased by 38.9% m/m to USD1.75 billion (August: USD1.26 billion), as the increase from FDIs (+12.2ppts m/m) and FPIs (+22.3% m/m) segments were enough to offset the decline in the other corporates (-16.9% m/m) segment.
Specifically, the increases in fixed income (+25.4% m/m) and Equity investment (+1.3% m/m) sub-segments drove the improvement in the inflows from FPIs.
Cordros Research analysts say that in the near term, they expect foreign exchange inflows from both local and foreign sources to remain strong, surpassing 2024 levels (2024FY average: USD2.51 billion), driven by increased market confidence and still attractive carry trade opportunities.
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