Naira Appreciates As FX Inflows Improve, Analysts Send Warnings

The Naira has seen an appreciation in the black market due to an increase in foreign exchange inflows from various sources. FBNQuest data shows a total forex inflow of $3.24 billion in July, up from $2.6 billion in June, but still below the peak in May 2025.

Foreign Portfolio Investors (FPIs) remain the largest source of inflow, accounting for 45%, with offshore investors contributing $1.45 billion. Corporates have led the supply of dollars, surpassing FPIs for two consecutive weeks.

Analysts attribute the rise to repatriated profits from upstream oil producers and improved access to foreign exchange. However, there are warnings about Nigeria's reliance on FPI flows, as it could expose the market to external shocks.

The Naira's value has fluctuated in the FX market, with the black market seeing an appreciation against the US dollar. The Central Bank of Nigeria's (CBN) NFEM window saw the N.