Foreign exchange inflows into the Nigerian Foreign Exchange Market (NFEM) declined by 20.7 per cent month on month to $3.31 billion in June 2026, as weaker inflows from both domestic and foreign sources reduced liquidity in the market.
The latest data from the Financial Markets Dealers Quotations (FMDQ) showed that total inflows dropped from $4.17 billion recorded in May, with reduced participation by exporters, importers, corporates, the Central Bank of Nigeria (CBN) and foreign portfolio investors driving the decline.
Analysis of the data showed that local inflows accounted for 48.9 per cent of total market inflows, but declined sharply by 30.1 per cent to $1.62 billion in June, down from $2.32 billion in the preceding month.
The decline was largely driven by a 32.5 per cent drop in inflows from exporters and importers, while non-bank corporates recorded a 30.5 per cent decline. Inflows from the CBN also fell by 12.1 per cent during the period under review.
However, inflows from individuals veered from the trend, rising by 70 per cent month-on-month, providing some support to the overall domestic foreign exchange supply.
Foreign inflows, which contributed 51.1 per cent of total inflows into the market, also moderated, falling by 9.0 per cent to $1.69 billion in June from $1.86 billion recorded in May.
The decline was mainly attributed to weaker foreign portfolio investment (FPI) inflows, which fell by 13.9 per cent despite improved inflows from foreign direct investment (FDI) and other corporate investors.
According to the data, FDI inflows rose by 37.8 per cent during the month, while inflows from other corporates surged by 324.9 per cent. Nevertheless, the gains were insufficient to offset the weakness recorded in portfolio investments.
A breakdown of FPI inflows showed that fixed-income investments declined by 16.3 per cent month on month, outweighing the 43.8 per cent increase in equity inflows.
