Forex Inflows Hit 16-Month High At $6.68bn

Total inflows into Nigeria’s Foreign Exchange Market (NFEM) surged to a 16-month high of $6.68 billion in August 2026, representing a 28.6 per cent month-on-month increase from the $5.20 billion recorded in July.

Analysts at Cordros Research attributed the sharp increase to stronger foreign inflows, which more than offset the decline in local inflows during the month. Foreign inflows, which accounted for 55.1 per cent of total NFEM inflows, rose by 97 per cent month on month to an all-time high of $3.68 billion in August, compared with $1.87 billion in July.

The increase was driven largely by stronger foreign portfolio investment (FPI) inflows and other corporate inflows, which rose by 113.3 per cent and 47.7 per cent, respectively. However, foreign direct investment (FDI) inflows declined by 80.7 per cent during the period.

Within the FPI segment, the analysts noted that the significant improvement was driven by a 103.4 per cent month-on-month increase in fixed income inflows and a 438.9 per cent surge in equity inflows.

Analysts at Cordros Research attributed the stronger foreign inflows to attractive carry-trade opportunities and sustained investor confidence in Nigeria’s domestic financial markets. Local inflows declined by 9.9 per cent month on month to $3 billion in August, from $3.33 billion in July.

The decline in local inflows was driven by lower inflows from the Central Bank of Nigeria (CBN), individuals and exporters. Specifically, CBN inflows fell by 29.1 per cent month on month, while individual inflows declined by 17.2 per cent. Exporter inflows also dropped by 1.8 per cent.

The decline was partly moderated by a 15.4 per cent increase in inflows from non-bank corporates. Looking ahead, Cordros Research said it expects foreign exchange inflows from both local and foreign sources to remain resilient in the near term.

The analysts said this would be supported by sustained market confidence and continued attractive carry trade opportunities.

They, however, warned that lingering global uncertainties could pose a downside risk to foreign inflows. “Lingering global uncertainties, particularly geopolitical tensions, remain a downside risk to foreign inflows,” the analysts said.