Forex inflows into the domestic economy closed 2025 at $112 billion, a new report from Financial Markets Dealers Association (FMDA) has shown.
The forex inflows were dominated by autonomous sources — private capital flows outside the Central Bank of Nigeria (CBN’s) direct control — accounting for 64.94 per cent of total FX inflows during the year.
The report, which also showed that the Central Bank of Nigeria’s own FX sales rose by 126.37 per cent within the coverage period, hitting $8.94 billion from $3.95 billion recorded in the previous year..
Autonomous inflows surged to $72.91 billion in 2025, up from $59.29 billion in 2024 and $41.80 billion in 2023, reflecting a near-doubling of private-sector dollar flows in two years.
The FMDA data reveals a market in which rising autonomous inflows are progressively displacing CBN-supplied liquidity as the primary driver of FX availability, even as the apex bank continues to play a stabilising role.
Total FX utilisation reached $47.17 billion in 2025, driven by a dramatic surge in invisible-related transactions and sustained industrial-sector demand. The data reveal a significant compositional shift in how Nigeria consumes its foreign exchange.
Invisible-related FX utilisation surged to $27.27 billion in 2025 from $11.10 billion in 2024, with financial services alone accounting for $21.22 billion.
Also, total import-related FX demand rose more moderately, from $15.54 billion in 2024 to $19.90 billion in 2025 while the industrial sector remained the largest merchandise-related source of demand at $8.43 billion, up from $7.96 billion in 2024.
“Oil-sector FX demand nearly doubled, from $2.26 billion in 2024 to $4.98 billion in 2025. Business services demand leapt from $702.38 million to $3.48 billion, while educational services demand fell sharply from $396.40 million in 2023 to just $55.16 million in 2025,” the report said.
The data indicates that invisible transactions — services, financial flows, and cross-border payments — have now eclipsed merchandise imports as the dominant driver of FX demand in Nigeria.
Market analysts said the autonomous inflows are driven by the reform. Remittances from the diaspora, inflows from foreign portfolio investors, non-oil export proceeds — all manner of things outside the traditional sources of our forex. This reflects the fact that the reform has positioned the economy to attract those inflows.
Likewise, CBN’s decision to clear over $7 billion unsettled FX backlogs raised investors’ confidence in the economy, supporting dollar inflows and foreign reserves accretion, CBN Governor, Olayemi Cardoso said.
The CBN boss had explained that although he had no idea where the fund for the backlog clearance would come from, when he assumed office, but he believed it was the right thing to do, and gave investors his word.
He said: “Credibility is at the heart of any central bank. If you don’t have credibility, people do not trust you and they do not invest in your economy. When I took office, I made a promise we would pay the backlog, the verifiable backlog of monies that were owed by Nigeria to third parties.”
“And it was, at the time, estimated at over $7 billion US dollars. And to be honest with you, I had no idea how I was going to do it, but I just felt it was not something to be negotiated”.
Cardoso explained that Nigeria needed to ensure that its integrity is maintained.
He said the apex bank started with a forensic audit to understand the issues better and based on the recommendations, the backlog of foreign exchange transactions was paid, which was a huge sacrifice.
He explained that “as a going concern, the CBN knows that if it expected people to continue to trust and invest in our economy, you’ve got to keep your promises”.
Some of these moves, including reforms in the exchange rate are key factors that continues to attract global investors into the economy.