Private FX Inflows Reach $21.15bn, Outpacing CBN — CBN
Autonomous sources supplied most of Nigeria’s foreign exchange in Q1 2026 as reserves, exports and the naira also improved.
Private-sector and other autonomous sources supplied $21.15 billion in foreign exchange to Nigeria in the first quarter of 2026, more than twice the $10.20 billion recorded through the Central Bank of Nigeria’s official inflows, according to the CBN’s latest first quarter Economic Report.
The figures point to a stronger contribution from autonomous sources to foreign exchange liquidity during the quarter, even though total FX inflows rose by 13.26 per cent to $31.34 billion from $27.67 billion in the preceding quarter.
The CBN said autonomous inflows increased by 23.90 per cent from $17.07 billion, while its own inflows declined by 3.77 per cent from $10.60 billion.
This meant autonomous sources accounted for about two-thirds of total foreign exchange inflows during the quarter, compared with roughly one-third supplied through the CBN.
The development coincided with an improvement in Nigeria’s overall foreign exchange position, with total FX outflows falling by 11.78 per cent to $11.01 billion from $12.48 billion.
Consequently, net foreign exchange inflows increased to $20.33 billion from $15.19 billion in the preceding quarter, representing an increase of about $5.14 billion.
The CBN’s data showed that autonomous sources accounted for $17.53 billion of the net inflow, up from $11.71 billion, while the CBN recorded a net inflow of $2.80 billion, lower than $3.48 billion previously.
The stronger net inflow also came alongside increased activity in the official foreign exchange market. Average daily turnover at the Nigerian Foreign Exchange Market rose by 36.87 per cent to $564.55 million from $412.48 million.
The naira consequently strengthened during the quarter, with the average exchange rate appreciating by 4.86 per cent to ₦1,384.48 per dollar from ₦1,451.72 per dollar.
Nigeria’s external reserves also improved, rising to $48.35 billion at the end of March 2026 from $45.75 billion at the end of December 2025.
The reserve position provided the equivalent of 8.84 months of merchandise import cover, according to the CBN.
The improvement in foreign exchange liquidity was supported partly by stronger export earnings. Merchandise exports increased by 15.96 per cent to $15.49 billion during the quarter.
Oil exports remained the dominant source of merchandise earnings, rising by 18.47 per cent to $13.01 billion, while non-oil exports increased modestly to $2.49 billion from $2.38 billion.
Crude oil, gas and refined petroleum products together accounted for 83.95 per cent of Nigeria’s merchandise export earnings during the period, highlighting the continued dominance of petroleum-related exports in the country’s external sector.
At the same time, merchandise imports declined significantly, falling to $9.54 billion from $11.59 billion in the preceding quarter.
The CBN attributed the decline largely to lower petroleum imports, which fell to $1.70 billion from $2.82 billion, reflecting improved domestic refining capacity.
The reduction in petroleum imports therefore helped narrow the amount of foreign exchange required to finance imports during the quarter, even as Nigeria continued to record substantial payments for non-oil goods.
However, the improvement in merchandise trade did not eliminate pressure from the services side of the external sector. Nigeria recorded a services deficit of $3.71 billion, wider than the $3.32 billion deficit in the preceding quarter.
Services payments amounted to $4.93 billion, with transportation, travel and other business services accounting for the largest portions.
Transportation payments stood at $1.62 billion, travel payments at $1.36 billion, while other business services accounted for $1.30 billion.
Services receipts, however, declined by 18.61 per cent to $1.23 billion, showing that Nigeria continued to spend considerably more foreign exchange on services than it earned from providing services to the rest of the world.
Another pressure point was remittance inflows, which fell by 7.50 per cent to $5.30 billion from $5.73 billion.
Despite the decline in remittances, the overall external position strengthened during the quarter, with the current and capital account recording a surplus of $4.98 billion, compared with $1.40 billion in the previous quarter.
The CBN data also showed that portfolio investment remained a major source of foreign capital, with portfolio investment liabilities rising to $6.03 billion from $5.27 billion, while direct investment liabilities stood at $1.03 billion.
Overall, the first-quarter figures show that Nigeria’s foreign exchange position benefited from stronger autonomous inflows, lower FX outflows, higher export earnings and reduced petroleum import requirements.
The data also indicate that the supply of foreign exchange was increasingly driven by sources outside the CBN, while the naira, reserves and official market turnover all recorded improvements during the quarter.
