Data from the Central Bank of Nigeria (CBN) has revealed a significant rise in net foreign exchange (FX) inflows into the Nigerian economy, which increased by 65.7% year-on-year (YoY) to $46.92 billion in the first ten months of 2024 (10m’24), compared to $28.31 billion during the same period in 2023.
The CBN’s Economic Report for the review period indicates that total forex inflows into the economy also rose by 41% YoY, reaching $79.8 billion in 10m’24, up from $55.57 billion in 10m’23. Despite this surge in inflows, forex outflows from the economy showed a slight decline of 1.4% YoY, falling to $29.84 billion in 10m’24 from $30.29 billion in 10m’23.
Notably, inflows through autonomous sources experienced a slight increase of 0.06% YoY, reaching $35.82 billion in 10m’24 compared to $34.4 billion in 10m’23. However, autonomous outflows saw a sharp rise, jumping by 195% YoY to $7.08 billion in 10m’24 from $2.4 billion in 10m’23.
As a result, net forex inflow through autonomous sources rose by 73% YoY, reaching $39.7 billion in 10m’24, up from $22.93 billion in the previous year.
On the other hand, inflows through the CBN increased by 55% YoY, reaching $32.94 billion in 10m’24 compared to $21.25 billion in 10m’23. Outflows through the CBN, however, decreased by 1.11% YoY, falling to $25.74 billion from $26.03 billion during the same period in 2023.
Consequently, net forex inflows through the CBN surged by 556.8% YoY, rising to $7.16 billion in 10m’24 from a net outflow of -$1.09 billion in 10m’23.
In its October 2024 Economic Report, the CBN noted a decline in month-on-month net forex inflows due to a reduction in inflows through the Bank. In September 2024, the economy recorded a net inflow of $4.86 billion, down from $6.35 billion in August 2024. Total forex inflows increased to $9.15 billion from $8.59 billion in the previous month, while outflows rose to $4.29 billion from $2.24 billion.
Inflows through the Bank decreased to $4.48 billion from $5.22 billion in the prior month, while autonomous inflows increased to $4.67 billion from $3.37 billion. Outflows through the Bank rose to $3.73 billion from $1.84 billion, while autonomous outflows increased to $0.56 billion from $0.40 billion in September.
As a result, a net inflow of $4.11 billion was recorded through autonomous sources, up from $2.97 billion in September, while the Bank recorded a net inflow of $0.75 billion, compared to a net outflow of $3.38 billion in the preceding month.
