Foreign Portfolio Investors (FPIs) have dominated dollar inflows into the Nigerian Foreign Exchange Market (NFEM) for 10 consecutive weeks, contributing significantly to naira stability.
On Monday, the naira appreciated marginally by 0.03 percent, as the dollar was quoted at N1,534.20, reflecting a N0.51 gain from Friday’s N1,534.71 closing rate at the NFEM, according to data from the Central Bank of Nigeria (CBN).
Total foreign exchange (FX) inflows into the FX market fell to $979.10 million from $1.31 billion recorded the previous week, according to a report by the research team at Coronation Merchant Bank.
Despite the decline, FPIs remained the largest source of inflows, contributing 51.39 percent ($503.10 million) of the total. This was, however, lower than the 62.50 percent seen in the previous week.
Non-bank corporates followed with 23.37 percent ($228.80 million), while the CBN and exporters/importers accounted for 13.05 percent ($127.80 million) and 11.12 percent ($108.90 million), respectively. Other sources made up just over one percent of total inflows.
Meanwhile, gross external reserves increased by $693.96 million, or 1.83 percent week-on-week, to $38.62 billion as of Thursday. This marks the third consecutive week of gains, likely supported by sustained FPI activity in recent weeks.
The naira showed mixed performance against the US dollar last week. At the Nigerian Autonomous Foreign Exchange Market (NAFEM), it depreciated by 0.15 percent week-on-week, closing at N1,534.72 per dollar. The depreciation was largely due to renewed demand pressures, prompting intervention by the CBN.
In the parallel market, the naira held steady, closing unchanged at N1,540.00 per dollar. This left a premium of N5.28, or 0.34 percent, between the official and street market rates.
Looking ahead, analysts at the Coronation said the FX market is expected to remain relatively stable within its current range, barring any unexpected domestic or external shocks. Foreign investors are also likely to continue pursuing opportunities in Nigeria’s fixed-income market, supported by improving macroeconomic indicators.
By late June, FPIs remained the top contributors for a sixth straight week, accounting for 36.98 percent of total inflows. They were followed by non-bank corporates at 27.56 percent, exporters at 22.39 percent, and others at 13.06 percent. The CBN contributed $96.3 million in that period, according to Coronation Merchant Bank.
On June 23, 2025, FPIs accounted for 67.29 percent of total inflows, followed by non-bank corporates with 13.02 percent, exporters with 10.87 percent, and the CBN with 8.43 percent. A week earlier, on June 16, FPIs once again led inflows, while non-bank corporates and exporters contributed 37.36 percent and 23.08 percent, respectively. The CBN recorded no inflows during that week.
Similarly, in the week ending June 10, FPIs made up 32.47 percent of total inflows. Non-bank corporates followed at 27.60 percent, the CBN at 19.78 percent, and exporters at 18.83 percent.
The trend continued in the first trading week of June, where FPIs led with 32.02 percent. Non-bank corporates contributed 29.49 percent, the CBN 19.71 percent, and exporters 18.33 percent. However, in the final week of May, ending May 26, exporters took the lead with 75.54 percent of inflows, while FPIs contributed 9.72 percent, non-bank corporates, 9.61 percent; and the CBN, 2.98 percent.
Earlier in the year, during the week of April 22, the CBN was the dominant source of inflows, accounting for 50.60 percent. Non-bank corporates followed with 25.14 percent, exporters with 12.99 percent, and FPIs with 8.61 percent(BusinessDay)
