Nigeria's FX Inflows Reach $3 Billion in January 2026

In January 2026, Nigeria experienced a significant increase in foreign exchange inflows, reaching $3 billion, which represents a seven-month rise. This growth is largely driven by foreign portfolio investors seeking high returns in Nigeria's fixed income market.

The portfolio inflow doubled during the month, underscoring the influence of short-term capital on liquidity conditions. Data from FMDQ indicates that Nigeria's high yield environment, supported by tight monetary policy, continues to attract sovereign debt returns and anchor external participation in the foreign exchange market.

The surge in portfolio inflows highlights the critical role of short-term capital in sustaining foreign exchange liquidity. Additionally, the Central Bank of Nigeria (CBN) has noted a significant decline in January, reflecting a growing dependence on foreign capital rather than domestic sources.

This shift in official intervention aims to support near-term liquidity and maintain investor confidence in Nigeria's foreign exchange market, which has shown signs of strengthening as of early 2026.