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Net foreign portfolio investment inflows reached $6.3bn between January and August 2026, adding to Nigeria’s foreign exchange liquidity.
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Autonomous sources supplied $7.3bn, or nearly 68 percent, of the $10.8bn in total FX inflows recorded in July.
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Gross external reserves rose to $55.6bn by September 11, while the gap between official and parallel-market rates narrowed to below 2.2 percent.
September 30, (THEWILL) – Nigeria’s foreign exchange position has strengthened as foreign portfolio investments, private-sector dollar inflows and diaspora remittances provide a larger share of liquidity in the market.
The Central Bank of Nigeria said net foreign portfolio investment inflows reached $6.3bn between January and August 2026, providing a significant source of foreign exchange for the economy.
Muhammad Sani Abdullahi, CBN Deputy Governor, disclosed the figure at the 38th Seminar for Finance Correspondents and Business Editors in Abuja on Tuesday.
Abdullahi said stronger FX inflows had contributed to improved market stability and reduced the need for the central bank to rely heavily on direct intervention to supply the market.
“Of the $10.8bn in total flows that we recorded in July this year, $7.3bn, or nearly 68 percent, came from autonomous sources,” he said.
The figures highlight the growing role of non-CBN sources in supplying dollars to Nigeria’s foreign exchange market.
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Remittances add to dollar liquidity
Diaspora remittances have also continued to provide an important source of foreign exchange through formal channels.
Abdullahi said inflows through international money transfer operators reached about $950m in July 2026, adding to portfolio investments and autonomous FX flows.
The stronger inflow position has coincided with an improvement in the country’s external reserves. Gross reserves stood at $55.6bn as of September 11, according to the CBN.
Abdullahi also highlighted the improvement in Nigeria’s net reserves, noting that they had fallen below $900m in 2023 after accounting for identified short-term obligations.
The stronger reserve position gives the country a larger external liquidity buffer to manage periods of pressure in the foreign exchange market.
FX market gap narrows
The improvement in dollar liquidity has also been accompanied by a sharp narrowing of the gap between official and parallel-market exchange rates.
According to the CBN, the average gap had fallen to below 2.2 percent, compared with an average of 68.2 percent between January and May 2023.
The narrower spread indicates that exchange rates across the two market segments have moved substantially closer together since the reforms introduced by the apex bank.
Abdullahi said tighter monetary policy and improved liquidity management had also contributed to greater stability in the market.
However, the CBN cautioned that improved FX liquidity does not mean all foreign exchange pressures facing households and businesses have disappeared
It said sustaining the gains would require continued policy discipline and deeper sources of investment and foreign exchange supply.
“Our task is to make the improvement more durable and to deepen the sources of investment and foreign exchange supply,” Abdullahi said.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
