Data from the Central Bank of Nigeria (CBN) reveals a significant rise in net foreign exchange (FX) inflows into the Nigerian economy, increasing by 65.7% year-on-year (YoY) to $46.92 billion in the first ten months of 2024. This is up from $28.31 billion in the same period in 2023.
The CBN’s Economic Report for the review period highlights a broader increase in aggregate forex inflows, which rose by 41% YoY to $79.8 billion in the first ten months of 2024, up from $55.57 billion in the corresponding period of 2023. Meanwhile, forex outflows from the economy decreased by 1.4% YoY to $29.84 billion in 10m’24, compared to $30.29 billion in 10m’23.
The data further breaks down the inflows through autonomous sources, which rose slightly by 0.06% YoY to $35.82 billion in 10m’24, up from $34.4 billion in 10m’23. However, outflows through autonomous sources saw a sharp increase of 195% YoY, rising to $7.08 billion in 10m’24 from $2.4 billion in 10m’23. As a result, net inflows through autonomous sources grew by 73% YoY, reaching $39.7 billion in 10m’24, compared to $22.93 billion in 10m’23.
Similarly, inflows through the CBN saw a significant increase of 55% YoY, rising to $32.94 billion in 10m’24, up from $21.25 billion in 10m’23. Outflows through the CBN declined by 1.11%, falling to $25.74 billion in 10m’24, compared to $26.03 billion in 10m’23. Consequently, net forex inflow through the CBN surged by 556.8% YoY, reaching $7.16 billion in 10m’24, compared to a net outflow of -$1.09 billion in 10m’23.
In its October 2024 Economic Report, the CBN also noted a decline in month-on-month net forex inflows, attributing the decrease to reduced inflows through the Bank. Total forex flows for October 2024 amounted to a net inflow of $4.86 billion, down from $6.35 billion in September 2024.
The report showed an increase in aggregate forex inflows, which rose to $9.15 billion in October, compared to $8.59 billion in September. On the other hand, forex outflows increased to $4.29 billion from $2.24 billion in the preceding month.
In terms of sources, inflows through the bank fell to $4.48 billion in October, from $5.22 billion in September, while autonomous inflows rose to $4.67 billion from $3.37 billion. Outflows through the bank increased to $3.73 billion, up from $1.84 billion, while autonomous outflows increased slightly to $0.56 billion from $0.40 billion.
As a result, autonomous sources recorded a net inflow of $4.11 billion in October, compared to $2.97 billion in September, while the bank saw a net inflow of $0.75 billion, down from $3.38 billion in the preceding month.
