DATA from the Central Bank of Nigeria (CBN)’s economic report revealed that net foreign exchange (FX) inflows through the economy rose significantly, reaching $5.95 billion as of November 2024, compared to $1.7 billion in the same period of November 2023—a remarkable increase of 245.9 percent.
The net FX flow, which represents the difference between total inflows and outflows of foreign exchange, reflects a positive balance, indicating that more foreign currency entered the economy than left. This inflow supports Nigeria’s foreign reserves and exchange rate stability.
Nigeria’s external reserves also increased during the review month, surpassing the international benchmark of three months of import cover. By the end of November 2024, the reserves stood at $40.38 billion, up from $39.71 billion in October 2024. This reserve level could cover 9.16 months of imports for goods and services or 13.71 months for goods alone.
On a monthly basis, the net FX inflow was lower in November 2024 due to reduced inflows through the CBN. Total FX flows recorded a net inflow of $5.95 billion, compared to $4.86 billion in October 2024. Aggregate foreign exchange inflows fell to $8.40 billion from $9.15 billion in the preceding month, while outflows dropped to $2.45 billion from $4.29 billion.
In November 2024, FX inflow through the CBN declined to $2.91 billion from $4.48 billion, whereas autonomous inflows rose to $5.49 billion from $4.67 billion. Outflows through the CBN fell to $2.09 billion from $3.73 billion, while autonomous outflows decreased to $0.36 billion from $0.56 billion in October 2024.
The CBN recorded a net inflow of $0.82 billion compared to $0.75 billion in October 2024, while autonomous sources reported a net inflow of $5.13 billion, up from $4.11 billion in the previous month.
However, the naira depreciated against the US dollar in the Nigerian foreign exchange market during the review period. The average exchange rate of the naira weakened by 1.78 percent to N1,670.78/US$ from N1,641.12/US$ in October 2024. At the end of the period, the rate appreciated slightly by 0.39 percent to N1,663.90/US$ from N1,670.47/US$ at the end of October.
The Nigerian Exchange Limited (NGX) also saw increased activity, with foreign investors contributing 15.25 percent (N852.03 billion) to equity transactions in 2024, up from 11.48 percent in 2023. Over the past 18 years, foreign transactions grew by 38.31 percent, while domestic transactions increased by 33.15 percent.
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