By Seun Ibiyemi
Nigeria’s economy recorded a downturn in net foreign exchange (forex) inflows in January 2025, driven mainly by a marked reduction in contributions from the Central Bank of Nigeria (CBN), according to the apex bank’s January Economic Report published on 17 April.
The report reveals that net forex inflows declined to $4.79 billion in January, representing a 4.49 per cent drop from the $5.01 billion reported in December 2024.
The decrease was primarily due to a steep fall in inflows through the CBN, which dropped to $2.33 billion from $4.09 billion in the previous month.
Total forex inflows also receded, falling to $9.63 billion from $10.17 billion in December, while outflows eased slightly to $4.84 billion from $5.17 billion.
Interestingly, inflows from autonomous sources — including private sector and non-governmental external transactions — surged to $7.31 billion, up from $6.08 billion. This shift points to increasing engagement from non-official actors in Nigeria’s forex landscape.
On the expenditure side, outflows tied to the CBN declined to $3.80 billion from $4.16 billion, whereas autonomous outflows edged up slightly to $1.04 billion.
The result was a significant net outflow of $1.47 billion through the CBN, a considerable rise compared to the marginal net outflow of $0.07 billion recorded in December.
By contrast, autonomous sources posted a strong net inflow of $6.26 billion, up from $5.07 billion the previous month. This trend indicates a growing capacity for foreign exchange generation outside government-controlled channels.
Despite the retreat in official forex inflows, the naira experienced modest gains during the review period. The average exchange rate appreciated by 1.16 per cent to N1,535.94 per US dollar, while the end-period rate strengthened by 3.90 per cent to N1,478.22 per US dollar.
Activity in the Nigerian Foreign Exchange Market (NFEM) also picked up, with average daily forex turnover climbing by 18.30 per cent to $408.49 million.
Although the boost in autonomous inflows and the firmer naira suggest a degree of economic resilience, the report warns that the sharp decline in CBN-sourced inflows may strain Nigeria’s balance of payments and foreign reserves. It calls attention to the importance of sustaining structural reforms and maintaining careful oversight of the forex market to safeguard macroeconomic stability.