US dollar inflows into Nigeria’s official foreign exchange market fell sharply last week, sliding by 24% to $512.20 million, according to a market update from Coronation Merchant Bank Limited.
The decline marks the second consecutive week of weakening FX inflows, driven largely by softer foreign portfolio investment (FPI) activity and reduced exporter proceeds. The sustained drop intensified pressure on the naira and prompted intervention from the Central Bank of Nigeria (CBN).
Coronation’s report shows that last week’s FX inflow of $512.20 million represents a notable decline from the $672.30 million recorded in the previous week. Total FX inflows had reached a month-high of $1.37 billion in early November, buoyed by offshore investors increasing exposure to Nigerian assets, but momentum has since slowed.
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Breakdown of FX Inflows
Foreign Portfolio Investors contributed the largest share:
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FPIs: 38.77% ($198.57 million)
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Exporters: 32.90%
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Non-bank corporates: 14.89%
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Individuals: 9.68%
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Others: 3.76%
Naira Depreciates in Both Official and Parallel Markets
The naira continued its downward trajectory across market segments last week:
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Official Market: Fell 0.98% w/w to N1,456.72/$1
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Parallel Market: Depreciated 1.02% to N1,465/$1
As a result, the gap between both markets widened slightly to N8.28/$1, up from N7.57/$1 a week earlier.
Outlook
Coronation Merchant Bank expects the exchange rate to remain relatively stable below the N1,500/$1 range, supported by ongoing CBN interventions and “steady liquidity conditions.”
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