The foreign exchange (FX) reforms driven by the Central Bank of Nigeria (CBN) attracted foreign capital inflows worth US$20.98 billion in the first ten months of 2025, the Governor, Olayemi Cardoso, has disclosed. This represents a 70 per cent increase over total inflows recorded in 2024 and an impressive 428 per cent surge compared to the US$3.9 billion posted in 2023. The remarkable rise marks one of the clearest signals yet that Nigeria’s macroeconomic stabilisation efforts are restoring investor confidence at scale.
Nigeria’s foreign exchange market has undergone a profound shift over the past year, following a series of structural reforms aimed at restoring transparency and improving price discovery. The unification of FX windows, the introduction of a more market-reflective rate-setting mechanism, and the deployment of the electronic FX matching system have created a clearer and more predictable environment for global investors. These reforms dismantled long-standing distortions in the market and set the stage for stronger inflows across portfolio, diaspora and investment channels.
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Governor Cardoso has emphasised that the surge in inflows is not a temporary spike but a reflection of returning confidence. Foreign investors, who had remained cautious in previous years due to settlement backlogs and multiple exchange rates, are re-entering the Nigerian market with renewed optimism. The CBN’s clearance of outstanding FX obligations further reinforced trust, eliminating one of the major barriers that had constrained investment appetite.
The return of foreign capital has provided a significant buffer for Nigeria’s external sector. With inflows nearing US$21 billion within ten months, the country is better positioned to support its import needs, stabilise FX supply, and maintain healthier reserve levels. Stronger inflows have also eased pressure on the naira and contributed to increased activity in the official market, with liquidity conditions improving markedly compared to earlier years.
This renewed momentum comes alongside rising non-oil revenues, stronger remittances through formal channels and a more disciplined monetary environment. Together, these factors have placed Nigeria on a firmer footing as it navigates global economic headwinds and domestic growth challenges.
A key driver of the improved investment climate has been the CBN’s commitment to market-led reforms and policy clarity. The shift away from administrative controls toward a transparent and rules-based FX framework has fostered confidence not only among foreign investors but also within the domestic business community. The narrowing of the gap between official and parallel market rates has reinforced the perception that the market is moving toward greater stability and integrity.
CBN leadership continues to project optimism about the months ahead, noting that the reform momentum is still unfolding. According to Cardoso, Nigeria is now positioned to attract even greater FX inflows as confidence deepens and broader macroeconomic reforms take root.
A Signal to Global Investors
The scale of the inflow turnaround has placed Nigeria back on the radar of global portfolio managers, fund houses, development finance institutions and multinational firms seeking emerging-market opportunities. At a time when several developing economies continue to struggle with currency volatility and reduced capital inflows, Nigeria’s progress stands out as a demonstration of what sustained policy discipline can deliver.
The inflows achieved so far in 2025 not only strengthen Nigeria’s external buffers but also create a foundation for broader investment in infrastructure, industry and technology—areas critical to long-term growth and competitiveness. With global sentiment cautiously improving and liquidity in emerging markets gradually normalising, Nigeria’s commitment to FX stability offers a compelling signal to international capital.
A Positive Trajectory for the Months Ahead
The momentum of 2025 reflects a pivotal shift in Nigeria’s approach to economic management. By prioritising transparency, policy clarity and market confidence, the CBN has succeeded in ushering in one of the strongest FX inflow periods in recent years. If the current reforms are sustained, Nigeria could be entering a new phase marked by stronger foreign participation, improved macroeconomic stability and deeper resilience in the face of global economic pressures.
The inflows of US$20.98 billion stand not only as a testament to the success of recent reforms but as an encouraging indicator of what disciplined economic policy can achieve. With continued commitment, Nigeria’s FX landscape is set for further strengthening as 2026 approaches.
