CBN Forex Inflows Drop in January 2025 as Naira Strengthens

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Nigeria saw weaker CBN forex inflows in January, but private sector activity and naira strength offered a silver lining.

Nigeria’s net foreign exchange inflow declined in January 2025, dropping 4.49% to $4.79 billion from $5.01 billion in December 2024, according to the Central Bank of Nigeria (CBN) Economic Report.

This fall was largely due to a sharp drop in CBN-sourced inflows, which plunged to $2.33 billion from $4.09 billion. In contrast, autonomous inflows rose to $7.31 billion, up from $6.08 billion, signaling increased private sector and external participation.

Foreign exchange outflows also declined, falling to $4.84 billion from $5.17 billion. CBN outflows dropped to $3.80 billion, while autonomous outflows slightly increased to $1.04 billion.

Key shifts:

1. Net outflow from the CBN surged to $1.47 billion in January, up from $0.07 billion in December.

2. Autonomous sources posted a stronger net inflow of $6.26 billion vs. $5.07 billion previously.

Meanwhile, the naira appreciated against the U.S. dollar:

✓ Average rate improved by 1.16% to N1,535.94/USD.

✓End-period rate gained 3.90% to N1,478.22/USD.

✓ Forex market turnover rose 18.30% to $408.49 million, reflecting improved liquidity.

The report warns of potential pressure on foreign exchange reserves due to lower CBN contributions. Still, rising autonomous inflows and a stronger naira present a more optimistic short-term outlook for macroeconomic stability.