Foreign exchange inflows from domestic sources into Nigeria have surged to their highest level in six years, according to the Central Bank of Nigeria (CBN). This growth signals rising confidence in the Nigerian economy and reflects the positive impact of recent federal macroeconomic reforms.
The CBN’s latest data shows that total forex inflows into the Nigerian Foreign Exchange Market (NFEM) reached $5.96 billion in May 2025, a 62% increase from $3.67 billion in April. Notably, domestic sources contributed $4.96 billion, or 83.2% of the total—marking the strongest domestic contribution since 2019.
This growth was largely fueled by a sharp rise in inflows from exporters and importers, which jumped from $655.7 million to $3.11 billion. Non-bank corporate inflows increased from $1 billion to $1.11 billion, while individual inflows rose from $15.1 million to $91.4 million. Meanwhile, the CBN’s own contribution declined from $1.35 billion to $649.8 million.
Foreign inflows made up 16.8% of the total, increasing by 51.7% from $657.4 million to $997.6 million—the highest in three months. Foreign portfolio investments surged by 61.3% to $880.8 million, with other foreign corporates adding $83.9 million (up 10%). However, foreign direct investments dipped slightly by 6.3% to $32.9 million.
The CBN also released its latest Purchasing Managers’ Index (PMI), showing sustained business expansion with a composite score of 52.1 in May, just below April’s 52.2. All sectors—agriculture (53.4), industry (51.6), and services (51.7)—remained in growth territory.
Analysts at Cordros Capital attribute this positive momentum to an improving macroeconomic outlook. “We expect continued private sector growth, supported by a more stable naira and easing inflation, though tight financial conditions may pose challenges in the short term,” the firm said.
President Bola Tinubu’s macroeconomic reforms have received wide acclaim. Business leaders like Africa’s richest man, Alhaji Aliko Dangote, praised the administration’s decisive leadership, highlighting the removal of fuel subsidies, exchange rate unification, and pro-industrial policies as key milestones fostering private sector growth.
Alhaji Abdulsamad Rabiu, Chairman of BUA Group, echoed these sentiments, applauding the government’s infrastructure development and policy reforms as driving rapid progress.
International credit rating agencies have also responded positively. Moody’s Investors Service upgraded Nigeria’s sovereign rating from Caa1 to B3, citing a stronger fiscal position and external accounts alongside demonstrated reform commitment. Fitch Ratings followed in April 2025, raising Nigeria’s rating from “B-” to “B” with a stable outlook, commending improved policy coherence, forex liberalisation, and subsidy removal for enhancing macroeconomic stability amid ongoing domestic and external challenges.