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According to the 2025 Annual Report and Statement of Accounts published by the Central Bank of Nigeria (CBN), Nigeria recorded total foreign exchange (FX) inflows of US$109.86 billion in 2025, representing a 13.81% increase from US$96.53 billion in 2024. This growth was driven largely by autonomous inflows, particularly non-oil export receipts and capital importation. Net FX inflows rose to US$60.81 billion, despite a 27.83% increase in aggregate outflows to US$49.05 billion and a 59.36% rise in overall FX utilisation, which reached US$42.83 billion. FX utilisation was largely concentrated in invisible imports and visible imports for the industrial sector, the latter accounting for 42.11% of total utilisation. Meanwhile, the decline in CBN[1]sourced inflows was primarily attributed to lower receipts from government debt and foreign exchange swap transactions. The increase in net FX inflows underscores the growing contribution of autonomous sources to Nigeria's foreign exchange liquidity. This development has strengthened private-sector liquidity, improved investor confidence, and supported the expansion of non-oil trade. However, the significant increase in autonomous outflows and the economy's ongoing reliance on imported industrial inputs highlight persistent structural weaknesses in the system. These include limited domestic manufacturing capacity and increased vulnerability to volatile short-term capital flows. To sustain this positive momentum, monetary and fiscal authorities must work in close coordination. The CBN and the Federal Government should introduce targeted tax incentives, improve trade and export logistics, and strengthen the competitiveness of the non-oil export sector to promote sustainable autonomous FX earnings over the long term. In addition, maintaining a transparent, market-reflective exchange rate regime, supported by effective regulatory oversight, will help reduce exchange rate volatility, enhance investor confidence, and channel capital inflows into productive sectors of the economy rather than speculative activities.
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