By Radarr Africa Business Desk
LAGOS, November 9 (Radarr Africa) – Nigeria’s net foreign exchange inflows rose from $950 million in 2022 to $9.22 billion in January 2026, an increase of about 871 per cent, according to Central Bank of Nigeria (CBN) data.
January’s net inflow was almost three times the $3.11 billion recorded in December 2025. Aggregate inflows rose 45.24 per cent to $12.23 billion in January, from $8.42 billion in the previous month.
Foreign portfolio inflows reached $15.8 billion in the first nine months of 2026, up from $12.2 billion in the same period of 2025. External reserves rose by a cumulative $6.5 billion over five months to $54.9 billion at the end of September 2026.
Analysts at Quest Merchant Bank credited resilient foreign capital inflows, higher crude prices and improving investor confidence, and said exchange rate volatility has moderated. They expect the naira to trade in a relatively narrow range in the near term, though demand-side pressures are likely to persist.
The World Bank ranked the naira among the better-performing non-CFA African currencies in the second quarter of 2026, despite volatility linked to the Middle East conflict. The International Monetary Fund has warned that heavy reliance on portfolio investment exposes Nigeria to sudden capital reversals.
The improvement in inflows contrasts with the 2022 foreign exchange crisis, when FirstBank cut some monthly international spending limits to $20 and Zenith Bank temporarily suspended international ATM withdrawals and point-of-sale transactions.
Limits on foreign currency card spending now vary widely across lenders. FirstBank allows $50,000 per quarter, GTCO $40,000 per quarter, and Zenith Bank $50,000 annually on naira cards. Access Bank allows up to $50,000 annually on its STMD prepaid card, with limits varying by card category.
UBA sets $1,000 monthly on standard naira debit cards, Fidelity Bank $1,000 quarterly, and Providus Bank $1,000 monthly on its Classic Naira Mastercard. Stanbic IBTC allows $100 monthly.
Ayodeji Ebo, chief executive of MDU Capital, said banks offer similar exchange rates but set different limits because their funding sources and positions differ. “Each bank also has a different FX position,” he said.
Tunde Abidoye, head of research at Quest Merchant Bank, said the amount of foreign currency a lender can access determines how much it can commit to international transactions.
Net inflows measure foreign currency coming into the country after outflows are deducted, and they are watched closely because the naira’s stability depends on how much dollar supply the market can draw on. Reserves of $54.9 billion give the central bank room to intervene if pressure returns.
