Nume Ekeghe
Inflows into Nigeria’s Foreign Exchange Market (NFEM) rose by 31.9 per cent month-on-month to $4.36 billion in July 2026, reaching their highest level in five months, according to Cordros Securities.
The increase was driven largely by stronger inflows from local sources, which accounted for 66.7 per cent of total inflows during the month, the investment firm said in a report released recently.
Cordros said: “Preliminary data from FMDQ shows that total inflows into the Nigerian Foreign Exchange Market (NFEM) increased to its highest level in five months, rising by 31.9per cent m/m to $4.36 billion in July compared to June at $3.31 billion.
“The outturn was driven by the increases in inflows from local, 66.7per cent of total inflows sources. Specifically, inflows from local sources rose by 79.8 per cent m/m to $2.91 billion June: $1.62 billion, reflecting increased market intervention from the CBN (+11.8x m/m) and higher inflows from non-bank corporates (+31.9per cent m/m) which offset the decline from the individual (-54.0per cent m/m) and Exporter (-12.9per cent m/m) segments.”
It added, “Meanwhile, inflows from foreign sources declined by 13.9per cent m/m to $1.45 billion (June: $1.69 billion), as the decreases from the FPIs (-18.5per cent m/m) and other corporates (-48.4per cent m/m) segments was enough to offset the increase in the FDIs (+388.3per cent m/m) segment. Specifically, declines in the equity investment (-53.2per cent m/m) and Fixed income (-16.1per cent m/m) sub-segments drove the dip in FPI inflows.”
The latest increase in NFEM inflows comes amid ongoing efforts by the CBN to improve liquidity and strengthen price discovery in the foreign exchange market.
According to the report, the sharp increase in foreign direct investment inflows provided some support to foreign-source inflows, but this was insufficient to reverse the overall decline in the category.