Nigeria’s private sector recorded a dramatic increase in foreign exchange demand in 2025, with autonomous foreign exchange outflows rising by 164.84 percent to $16.26 billion, according to the latest 2025 Annual Report and Statement of Accounts released by the Central Bank of Nigeria. The sharp increase reflects stronger participation by businesses and investors in the country’s foreign exchange market as economic activities continued to recover amid ongoing financial reforms.
The report showed that private sector foreign exchange outflows climbed significantly from $6.14 billion in 2024 to $16.26 billion in 2025, representing one of the fastest annual increases in recent years. The surge played a major role in pushing Nigeria’s total foreign exchange outflows to $49.05 billion, compared to $38.37 billion recorded in the previous year.
Economists say the figures highlight a changing foreign exchange landscape in Nigeria, where businesses are increasingly sourcing foreign currency through autonomous market channels instead of relying solely on allocations from the Central Bank.
The autonomous segment of the foreign exchange market consists of transactions carried out by commercial banks, exporters, investors, multinational companies and other private sector participants based on prevailing market rates. Increased activity in this segment is often viewed as a sign of improving investor confidence and a more market driven exchange rate system.
While private sector demand expanded rapidly, the Central Bank’s direct foreign exchange outflows remained relatively stable. According to the report, official outflows through the apex bank increased marginally by 1.74 percent, rising from $32.23 billion in 2024 to $32.79 billion in 2025. Despite the modest increase, official transactions still accounted for approximately 66.9 percent of Nigeria’s total foreign exchange outflows during the year.
The report also revealed encouraging developments on the inflow side of the foreign exchange market.
Nigeria recorded total foreign exchange inflows of $109.86 billion in 2025, representing a 13.81 percent increase from $96.53 billion in 2024. The improvement was largely driven by stronger autonomous inflows, which reached $70.54 billion, supported by increased non oil export earnings, higher capital importation and stronger over the counter foreign exchange purchases.
The Central Bank explained that inflows through official channels declined slightly to $39.32 billion, mainly because of lower receipts from government debt transactions and reduced foreign exchange swap activities. Nevertheless, the strong performance of private sector inflows more than compensated for the decline, resulting in a healthier external financial position for the country.
Overall, Nigeria posted a net foreign exchange inflow of $60.81 billion in 2025, an improvement over the $58.16 billion recorded in 2024. Autonomous market activities generated a net inflow of $54.28 billion, while the Central Bank contributed an additional $6.52 billion. These figures indicate that private sector transactions are becoming increasingly important in supporting the country’s foreign exchange market.
Financial analysts believe the latest figures demonstrate the impact of ongoing reforms aimed at liberalising Nigeria’s foreign exchange system. Since the introduction of policies designed to unify exchange rates and encourage market based pricing, more businesses have turned to formal autonomous channels for their foreign currency needs.
The increased demand for foreign exchange is also linked to rising imports of machinery, industrial equipment, raw materials and other goods required by manufacturers and businesses seeking to expand production. As economic activity improves, companies typically require more foreign currency to finance international trade and investment.
Experts note that although rising foreign exchange outflows may appear concerning at first glance, the stronger growth in inflows provides a more balanced picture. Higher inflows indicate increased investor participation, improved export performance and stronger foreign capital movement into the Nigerian economy.
The Central Bank has repeatedly maintained that creating a transparent and efficient foreign exchange market remains one of its key priorities. Officials believe that allowing market forces to play a greater role in determining exchange rates will improve liquidity, attract foreign investment and reduce distortions that previously affected the availability of foreign currency.
Businesses have also welcomed recent improvements in access to foreign exchange, although many continue to advocate for greater market stability and policies that will reduce exchange rate volatility. Manufacturers, importers and exporters argue that a predictable foreign exchange environment is essential for long term planning and sustainable economic growth.
The latest report comes at a time when Nigeria continues implementing broader economic reforms aimed at boosting investor confidence, increasing non oil exports and strengthening external reserves. These reforms are expected to enhance the country’s competitiveness while reducing dependence on oil revenues as the primary source of foreign exchange earnings.
As private sector participation continues to expand, analysts believe Nigeria’s foreign exchange market is gradually evolving into a more dynamic and resilient system capable of supporting long term economic development.
While challenges such as inflation, exchange rate fluctuations and global economic uncertainties remain, the significant increase in both foreign exchange inflows and private sector activity suggests that confidence in Nigeria’s evolving financial market is gradually improving.
