Total inflows into Nigeria’s Foreign Exchange Market (NFEM) climbed to a 16-month high of $6.68 billion in August 2026, representing a 28.6 per cent increase from the $5.20 billion recorded in July.
Analysts at Cordros Research attributed the rise to stronger foreign inflows, which more than offset the decline recorded in local inflows during the month.
Foreign inflows accounted for 55.1 per cent of total NFEM inflows, rising by 97 per cent month on month to an all-time high of $3.68 billion in August, compared with $1.87 billion in July.
The analysts said the increase was largely driven by stronger foreign portfolio investment (FPI) and other corporate inflows, which rose by 113.3 per cent and 47.7 per cent respectively.
However, foreign direct investment (FDI) inflows declined by 80.7 per cent during the period.
Within the FPI segment, Cordros Research said the significant improvement was supported by a 103.4 per cent month-on-month increase in fixed income inflows and a 438.9 per cent jump in equity inflows.
The analysts linked the stronger foreign inflows to attractive carry-trade opportunities and continued investor confidence in Nigeria’s domestic financial markets.
Meanwhile, local inflows fell by 9.9 per cent month on month to $3 billion in August, down from $3.33 billion recorded in July.
The decline was attributed to lower inflows from the Central Bank of Nigeria (CBN), individuals and exporters.
CBN inflows dropped by 29.1 per cent month on month, while individual inflows declined by 17.2 per cent. Exporter inflows also fell by 1.8 per cent.
The decline was partly cushioned by a 15.4 per cent increase in inflows from non-bank corporates.
Looking ahead, Cordros Research said it expects foreign exchange inflows from both domestic and foreign sources to remain resilient in the near term.
The analysts said sustained market confidence and continued attractive carry-trade opportunities would support inflows.
They, however, warned that uncertainties in the global economy could create risks for foreign exchange inflows.
“Lingering global uncertainties, particularly geopolitical tensions, remain a downside risk to foreign inflows,” the analysts said.
Source: Cordros Research
