Data from FMDQ show that total inflows into the Nigerian Foreign Exchange Market (NFEM) rose by 17.5 per cent month-on-month to USD3.37 billion in December, up from USD2.87 billion in November. The improvement was driven by growth in both local and foreign sources of inflows.
Inflows from local sources, which accounted for 74.9 per cent of the total, increased by 24.2 per cent month-on-month to USD2.52 billion in December, compared with USD2.03 billion in November. The increase was largely supported by higher contributions from the Central Bank of Nigeria (+51.7% m/m), individual investors (+36.9% m/m), and exporters/importers (+32.8% m/m), despite a decline in the non-bank corporates segment (-8.9% m/m).
Inflows from foreign sources, representing 25.1 per cent of total inflows, rose marginally by 1.2 per cent month-on-month to USD847.4 million (November: USD837.1 million). The growth was mainly driven by higher inflows from foreign direct investment (+102.4% m/m) and other corporate entities (+40.2% m/m), while foreign portfolio investment inflows declined by 7.9 per cent month-on-month.
Overall, total inflows into the NFEM in 2025 increased by 62.9 per cent year-on-year to USD50.67 billion, up from USD31.11 billion in 2024. The growth was underpinned by relatively higher exports, improved market confidence, and attractive carry-trade opportunities.
Looking ahead, analysts expect inflows from both domestic and foreign sources to remain robust, supported by rising exports, sustained market confidence, and continued favourable carry-trade conditions.
