CBN Reforms Boost FX Inflows to $112 Billion by 2025

The Central Bank of Nigeria (CBN) has successfully driven foreign exchange (FX) inflows to $112 billion by 2025, significantly raising investor confidence in the economy. This increase follows the clearing of a $7 billion backlog of unsettled foreign exchange transactions, a move that CBN Governor Olayemi Cardoso believes is crucial for restoring trust in the Nigerian economy.

Cardoso, who took office without a clear timeline for resolving the backlog, emphasized the importance of credibility for the CBN, stating that without it, investors would be hesitant to engage. The reforms have led to a notable rise in autonomous inflows, including diaspora remittances and foreign portfolio investments.

Data from the Financial Market Dealers Association (FMDA) indicates that CBN's own FX sales rose by 126.37% to $8.94 billion, while autonomous inflows surged to $72.91 billion. The report also highlights a significant shift in FX demand across various sectors, with the industrial sector remaining the largest source of demand.