Nigeria’s net foreign exchange (forex) inflow climbed to $17.39 billion in the fourth quarter of 2024, reflecting a surge in autonomous sources such as foreign investments, remittances, and export earnings.
According to the latest Quarterly Economic Report from the Central Bank of Nigeria (CBN), total forex inflows into the economy grew by 20.62% to $27.81 billion in Q4, up from $23.06 billion in Q3. The bulk of this growth was fueled by a 47.55% rise in autonomous inflows, which increased from $11.03 billion to $16.27 billion.
However, inflows through the CBN dipped slightly by 4.05%, falling from $12.03 billion in Q3 to $11.54 billion in Q4. This suggests a reduction in official forex earnings, possibly due to lower foreign direct investment (FDI), remittances, or grants.
Forex Outflows Also on the Rise
Despite increased inflows, foreign exchange outflows saw a sharp 31.37% rise, reaching $10.42 billion in Q4 2024. Outflows via the CBN grew by 22.98% to $8.99 billion, while autonomous outflows skyrocketed 129.59% to $1.43 billion.
As a result, net forex inflows through the economy rose by 14.99% to $17.39 billion, compared to $15.13 billion in the previous quarter. Notably, net inflows from autonomous sources surged to $14.84 billion, up from $10.40 billion in Q3, while net inflows through the CBN dropped to $2.56 billion from $4.72 billion.
Key Takeaways
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In November 2024, Finance Minister Wale Edun reported that $2.35 billion was added to the CBN’s foreign reserves, helping stabilize the naira.
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The Nigerian government successfully hit its 2 million barrels per day (bpd) crude oil production target for 2024, reinforcing fiscal revenues.
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Remittance inflows surged by 130% to $553 million as of July 2024, further strengthening the country’s forex reserves.
With growing private sector-driven forex inflows and improved reserves, Nigeria’s foreign exchange market is on a steady path to stability in 2025.
