By Emmanuel Enitan
Nigeria’s foreign exchange supply rose by 20.5 per cent to $8.94 billion in 2025, compared with $7.43 billion recorded in 2024, indicating an improvement in dollar liquidity in the foreign exchange market during the year.
The latest figures are contained in the Central Bank of Nigeria’s (CBN) 2025 Statistical Bulletin, which showed that the increase represented an additional $1.51 billion supplied to the market over the period.
The data showed that foreign exchange supply fluctuated considerably throughout the year, with the strongest monthly supply recorded in April when it peaked at $1.65 billion.
Supply stood at $590.64 million in January and rose marginally to $607.63 million in February before increasing to $1.04 billion in March.
It subsequently climbed to $1.65 billion in April, before moderating to $838.93 million in May and $676.31 million in June.
The supply increased to $759.02 million in July but declined to $677.84 million in August and $399.80 million in September.
October recorded the lowest monthly supply for the year at $150.10 million, before recovering to $638.38 million in November and $910.73 million in December.
The improvement in FX supply came amid broader growth in foreign exchange inflows into the Nigerian economy.
According to the CBN, aggregate FX inflows increased by 13.81 per cent from $96.53 billion in 2024 to $109.86 billion in 2025.
However, foreign exchange outflows rose faster, increasing by 27.83 per cent from $38.37 billion to $49.05 billion during the period.
Consequently, net FX inflows increased moderately from $58.16 billion in 2024 to $60.81 billion in 2025.
The $8.94 billion supply figure should, however, not be confused with the broader $109.86 billion FX inflow figure, as the CBN datasets measure different aspects of activity in the foreign exchange market. The CBN’s supply data also do not provide a detailed breakdown of the sources of the $8.94 billion supplied during the year.
The stronger FX position was also reflected in the country’s external reserves. The CBN’s 2025 macroeconomic outlook estimated that reserves rose to $45.01 billion at the end of December 2025, from $40.19 billion a year earlier, while the balance of payments remained in surplus.
The apex bank attributed the favourable external-sector performance largely to ongoing reforms in the foreign exchange market, improved portfolio inflows and sustained export receipts.
The CBN has introduced a number of measures aimed at improving transparency and efficiency in the FX market, including the Nigerian Foreign Exchange Code and the Electronic Foreign Exchange Matching System.
The bank said the narrowing gap between the Nigerian Foreign Exchange Market and Bureau de Change rates was also evidence of greater convergence in the market.
Industry analysts, however, note that improved supply alone does not automatically translate into stable exchange rates, as demand for foreign currency, import requirements, capital flows and external-sector developments continue to influence the naira.
The Financial Markets Dealers Association similarly reported that CBN FX sales rose sharply in 2025, reaching $8.94 billion, while autonomous sources accounted for 64.94 per cent of total FX inflows, underscoring the growing role of private-sector foreign currency flows in the market.
For businesses, sustained improvement in FX liquidity could reduce the uncertainty associated with access to foreign currency and support planning for import-dependent operations. However, the continued rise in FX demand means that maintaining adequate supply remains critical to achieving greater stability in the naira market.
