Foreign Portfolio Investors (FPIs) have dominated foreign exchange (FX) inflows in the past six weeks, overtaking exporters, non-bank corporates, and even the Central Bank of Nigeria (CBN), reflecting sustained foreign investor interest in the economy.
Last week, the FX market recorded total inflows of $1.03 billion, with FPIs contributing the highest share at 36.98 percent for the sixth consecutive week. This was followed by non-bank corporates with 27.56 percent, exporters with 22.39 percent, and others accounting for 13.06 percent. The CBN also contributed inflows of $96.3 million, according to a report by Coronation Merchant Bank.
On June 23, 2025, FPIs accounted for 67.29 percent of total inflows, followed by non-bank corporates at 13.02 percent, exporters at 10.87 percent, while the CBN brought in 8.43 percent. A week earlier, on June 16, FPIs also led total FX inflows, with non-bank corporates contributing 37.36 percent and exporters 23.08 percent. The CBN recorded no inflow that week.
Similarly, in the week ending June 10, 2025, FPIs recorded 32.47 percent of total inflows, followed by non-bank corporates at 27.60 percent, the CBN with 19.78 percent, and exporters at 18.83 percent.
The trend was consistent in the first trading week of June, where FPIs dominated with 32.02 percent of inflows. Non-bank corporates followed with 29.49 percent, the CBN with 19.71 percent, and exporters with 18.33 percent. However, in the final trading week of May, specifically May 26, exporters led the inflows with 75.54 percent, followed by FPIs at 9.72 percent, non-bank corporates at 9.61 percent, and the CBN at 2.98 percent.
Earlier in the year, the CBN had dominated FX inflows during the week of April 22, 2025, accounting for 50.60 percent of total inflows. Non-bank corporates followed at 25.14 percent, exporters at 12.99 percent, while FPIs accounted for 8.61 percent.
Read also: CBN, portfolio investors still dominate Nigeria’s FX turnover – World Bank
Naira strengthens
Meanwhile, the naira ended the month of June 2025 on a positive note, appreciating by 3.4 percent to close at N1,529.71 per dollar on Monday, the last trading day of the month. This marks a gain of N51.87 from the N1,581.58 quoted at the beginning of the month.
On a day-on-day basis, the naira appreciated by 0.6 percent, as the dollar was quoted at N1,529.71 on Monday, compared to N1,539.23 on Friday at the Nigerian Foreign Exchange Market (NFEM), according to data from the CBN.
In the parallel market, also known as the black market, the naira gained N5 against the dollar, closing at N1,570 on Monday from N1,575 on Friday.
Nigeria’s gross external reserves closed the week at $37.37 billion, a decline of $293.87 million or 0.78 percent week-on-week, according to data from the apex bank.
During the week, the naira strengthened by N8.13 or 0.53 percent week-on-week at the official NFEM window, closing at N1,539.24 per US dollar. The appreciation was supported by inflows from FPIs, non-bank corporates, and exporters, which pushed the naira to a high of N1,536.08 per dollar during the week. Similarly, at the parallel market, the naira appreciated by 1.90 percent, closing at N1,575 per dollar.
“We expect the naira to remain relatively stable in the near term, supported by continued foreign portfolio inflows and improved FX supply from non-bank corporates and exporters. However, the moderate decline in gross external reserves and the relatively modest FX inflow from the CBN suggest that the market may remain sensitive to demand-side pressures,” Coronation Research analysts noted.
They also flagged concerns about global oil prices and Nigeria’s oil production levels, which directly impact FX inflows from crude oil sales. Sustained investor interest in fixed income assets, if maintained, could help anchor sentiment, they said. However, further stability will depend on the pace of reserve accretion and the central bank’s ongoing intervention strategy.
Olayemi Cardoso, governor of the CBN, reaffirmed the bank’s commitment to attracting $1 billion in monthly diaspora remittances. He stressed the importance of strict adherence to the FX Code and regulatory frameworks as key to fostering market stability and rebuilding trust among stakeholders.
Also speaking on recent developments, Muhammad Sani Abdullahi, deputy governor for Economic Policy at the CBN, highlighted sharp increases in FX turnover, emerging signs of disinflation, and a strengthening of external reserves. “With a market-determined exchange rate and a transparent, rules-based policy framework, confidence is gradually being restored in Nigeria’s economy,” he said.
