Big Win for Naira: CBN Reveals $8.6bn FX Turnover as Dollar Inflows Surge, Reserves Hit New High
- The Central Bank of Nigeria (CBN) is betting big on Nigeria’s improved foreign exchange turnover
- CBN’s deputy governor, Mohammed Sani Abdullahi, disclosed at an IMF/World event that there is a surge in dollar inflows in Nigeria
- He said the surge was largely driven by reforms in remittances and renewed investor confidence
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Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
This may be the best of times for Nigeria’s economy as the Central Bank of Nigeria (CBN) has revealed that the country’s monthly FX turnover has risen to a new high.
According to CBN’s deputy governor, Mohammed Sani Abdullahi, Nigeria’s monthly FX turnover stands at $8.6 billion in 2025.
Source: Getty Images
Forex turnover increases in Nigeria
The CBN’s deputy governor stated this during an investors forum on the sidelines of the annual meetings of the International Monetary Fund (IMF)/World Bank in Washington, USA.
According to a report by TheCable, Abdullahi told investors that Nigeria’s two-year push to attract foreign exchange inflows is finally paying off, driving a sharp rise in FX turnover.
Nigerian FX market is now attractive
He disclosed that forex supply at the official window has significantly improved, driven by order-based quotation.
He also cited reforms around remittances and all other issues, including clearing FX backlogs and all outstanding obligations.
Abdullahi said:
“There’s been a significant increase in the average monthly turnover to $8.6 billion monthly in 2025 versus an average of $5.5 billion and much less in the year before.
“Today, CBN stands as a net supplier by less than about a percentage of the market turnover. We’re actually a net buyer in the market.”
He also emphasised that Nigeria is rebuilding its external reserves, which hit $42.669 billion, in the past two years to boost its resilience to economic shocks.
CBN boosts FX remittances
The CBN anchorman at the Washington event said Nigeria is an active and ethical market, where players are supplying and buying forex transparently.
He said:
“We are currently commencing a reform together with stakeholders, SEC and the Pension Commission, of the secondary market to also improve investable instruments for investors, to deepen that market, to bring in transparency and ensure ethical conduct in that segment.”
The deputy governor added that the country now has deeper, more functional financial markets that are also more robust and transparent.
Inflows drop but naira rises
Experts have said the CBN’s forex reforms have brought buoyancy to the foreign exchange market, which has led to the naira’s appreciation.
A prior report by Legit.ng disclosed that the local currency appreciated on Thursday, October 16, 2025, closing at N1,471 per dollar, up from N1,473 the previous day.
Meanwhile, foreign exchange inflows into the economy dropped in September 2025.
Source: Getty Images
Dollar supply drops in September
Data cited by Cordros Capital Limited revealed that while foreign investments into equities and bonds remained strong, the overall decline was driven largely by weaker inflows from local sources.
Despite the slowdown, the naira managed to hold firm, buoyed by steady investor confidence, increased remittances, and interventions from the Central Bank of Nigeria (CBN).
Figures from FMDQ showed a significant drop in local inflows, down 32.4% month-on-month to $1.42 billion, compared to $2.10 billion in August.
This was caused by declines in dollar supplies from the CBN, exporters, and non-bank corporates
Naira under pressure: Fresh volatility hits FX market
Legit.ng earlier reported that after weeks of relative stability, the Nigerian naira has come under renewed pressure as demand for the U.S. dollar surged across foreign exchange markets, stirring fresh concerns about instability and investor confidence.
The local currency weakened by 0.39% on Tuesday, October 14, 2025, settling at ₦1,463.23 per dollar at the Nigerian Foreign Exchange Market, according to updated data from the Central Bank of Nigeria (CBN).
The drop marks the second consecutive day of losses, following a brief period of gains driven by foreign inflows and CBN support.
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Source: Legit.ng
