Nigeria’s foreign exchange market recorded a significant upturn in May 2025, with total inflows hitting $5.96 billion — the highest monthly figure in six years — according to data from FMDQ.
The surge represents a 62% increase from the $3.67 billion recorded in April 2025, and it has positively impacted the naira, which appreciated to ₦1,539 per US dollar on official trading platforms.
The latest figures reveal that domestic sources dominated the inflow profile, contributing 83.2% of total funds. Domestic forex inflows rose by 64.2%, moving from $3.02 billion in April to $4.96 billion in May, the highest monthly contribution since 2019.
Foreign sources also showed strong performance, with inflows climbing by 51.7% from $657.4 million to $997.6 million — marking a three-month high. This growth signals increased investor confidence and the effect of recent policy adjustments aimed at improving transparency and liquidity in the Nigerian Foreign Exchange Market (NFEM).
Analysts attribute the rise in foreign exchange inflows to a combination of factors, including improved remittance channels, foreign portfolio investment inflows, and robust activities in the oil and non-oil sectors.
The Central Bank of Nigeria (CBN) is expected to continue monitoring the momentum as it works toward long-term currency stability, curbing inflation, and enhancing Nigeria’s balance of payments position.
