Nigeria’s net foreign exchange flows rose by 5.5 per cent to $22.50bn in the second quarter of 2026, marking the country’s strongest quarterly performance since the fourth quarter of 2019, according to data from the Central Bank of Nigeria.
The CBN’s Q2 2026 Statistical Bulletin showed that net foreign exchange flows increased from $21.33bn in the first quarter to $22.50bn in the second quarter, largely because dollar outflows declined more sharply than inflows.
The development represents an improvement in Nigeria’s foreign exchange position, although it does not necessarily mean that the entire amount was added to the country’s external reserves.
Total foreign exchange inflows fell from $32.39bn in the first quarter to $31.43bn in the second quarter. However, outflows dropped from $11.05bn to $8.93bn during the same period.
The $2.12bn reduction in outflows more than offset the $960m decline in inflows, resulting in an increase of approximately $1.17bn in net FX flows.
Monthly figures also indicated a steady improvement throughout the quarter. Net flows stood at $6.53bn in April, rose to $7.91bn in May and increased further to $8.06bn in June, the highest monthly figure recorded during the period.
The second-quarter performance was the strongest since the fourth quarter of 2019, when net FX flows reached $25.08bn. However, it remained below the historical peak of $31.93bn recorded in the third quarter of 2014.
A breakdown of the figures showed that autonomous sources, comprising foreign exchange transactions outside the CBN’s direct channels, accounted for a substantial share of the flows.
Net FX flows through autonomous sources stood at $6.70bn in April, declined to $5.70bn in May and recovered to $6.74bn in June.
Flows through the CBN were more volatile, recording a net outflow of $176.28m in April before returning to positive territory with net inflows of $2.21bn in May and $1.32bn in June.
The improvement also coincided with stronger foreign portfolio investment. Portfolio investment reportedly increased by 45 per cent to $6.51bn in the second quarter, compared with $4.49bn in the preceding quarter.
However, concerns remain over the performance of foreign direct investment, which declined sharply in the first quarter of 2026, according to the National Bureau of Statistics.
Analysts say sustained foreign exchange inflows could improve dollar liquidity and reduce pressure on the naira. Nevertheless, the durability of the improvement will depend on continued inflows, controlled outflows and stronger long-term investment.
The latest figures therefore point to a more favourable net foreign exchange position, but maintaining the momentum will remain important for Nigeria’s currency market and broader economic stability.
