Dollar Demand Plunges 35% in One Month as Naira Holds Firm, CBN Data Shows
- Nigeria's FX demand dropped 35.23% in April, totalling $3.42 billion, according to CBN data
- Naira appreciated by 1.38%, reaching N1,361.22 per dollar amid reduced FX trading activity
- Nigeria recorded a stronger net FX inflow of $5.85 billion despite lower overall inflows in April
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Demand for foreign exchange by end-users in Nigeria dropped significantly in April 2026, with total sectoral FX utilisation falling by 35.23 per cent to $3.42 billion, according to the Central Bank of Nigeria’s monthly economic report.
The decline came as the naira maintained relative stability in the official foreign exchange market, while stronger net foreign exchange inflows helped ease pressure on the local currency.
Source: Getty Images
The CBN data showed that visible imports accounted for 41.92 per cent of total FX utilisation, while invisible imports made up the larger 58.08 per cent share.
Industries remain major dollar users
Industrial activities accounted for the largest share of FX used for visible imports, representing 37.44 per cent of total utilisation.
Manufactured products followed with 21.85 per cent, while oil imports accounted for 20.11 per cent. Food products represented 14.47 per cent of visible import-related FX demand.
Transport accounted for 3.54 per cent, while minerals and agriculture represented 1.47 per cent and 1.12 per cent, respectively.
For invisible imports, financial services dominated, accounting for 91.51 per cent of utilisation. Business services followed with 4.37 per cent, transport services with 2.58 per cent and communication services with 0.84 per cent.
Naira strengthens against dollar
The decline in FX demand coincided with an appreciation of the naira at the Nigerian Foreign Exchange Market (NFEM).
The average exchange rate strengthened by 1.38 per cent to N1,361.22 per dollar in April, compared with N1,379.98 in March.
At the end of April, the NFEM rate stood at N1,374.94 per dollar, improving from N1,386.72 recorded at the end of March.
However, average daily FX turnover declined by 26.97 per cent to $442.54 million from $605.93 million, indicating reduced trading activity during the month.
Nigeria records stronger net FX inflow
Despite lower overall inflows, Nigeria recorded a stronger net foreign exchange inflow of $5.85 billion in April, compared with $4.16 billion in March.
Aggregate FX inflows fell to $8.71 billion from $9.70 billion, but total outflows dropped much more sharply to $2.86 billion from $5.54 billion.
Banking-system inflows fell to $1.83 billion, while autonomous inflows stood at $6.88 billion. On the outflow side, banking-system payments dropped to $2 billion from $4.12 billion, according to a report by BusinessDay.
Reserves remain strong
Nigeria’s external reserves remained broadly stable at $48.32 billion at the end of April, compared with $48.35 billion in March.
The reserves were enough to cover about 10.01 months of imports of goods and services, well above the international benchmark of three months.
Source: Getty Images
Meanwhile, the naira extended its recovery on Thursday, August 20, 2026, gaining N3 against the dollar at the NFEM to close at N1,347 per dollar, compared with N1,351 the previous day.
NFEM turnover also rose slightly to about $371.79 million from $370.98 million, signalling increased activity as the naira maintained its recent stability.
CBN crashes dollar as demand increases
Legit.ng earlier reported that the Central Bank of Nigeria sharply ramped up its foreign exchange interventions in March 2026, selling $953.41m to the market in what the data shows is the strongest central bank FX activity since April 2025.
Figures published in the CBN's latest Quarterly Statistical Bulletin showed that spot market transactions made up the bulk of the March sales, with $950.10m channelled through that route and a further $3.31m directed to Ministries, Departments and Agencies.
Source: Legit.ng
