Nigeria's foreign exchange demand by end-users fell sharply by 35.23 percent in April 2026 to $3.42 billion, according to the Central Bank of Nigeria's monthly economic report, as the naira appreciated 1.38 percent to N1,361.22 per dollar at the official market.
The decline in sectoral FX utilisation coincided with stronger net foreign exchange inflows, which reached $5.85 billion in April, up from $4.16 billion in March. The CBN data showed that visible imports accounted for 41.92 percent of total FX utilisation, while invisible imports made up the larger 58.08 percent share.
Industries Lead Dollar Demand for Visible Imports
Industrial activities accounted for the largest share of FX used for visible imports, representing 37.44 percent of total utilisation. Manufactured products followed with 21.85 percent, while oil imports accounted for 20.11 percent. Food products represented 14.47 percent of visible import-related FX demand. Transport accounted for 3.54 percent, while minerals and agriculture represented 1.47 percent and 1.12 percent, respectively.
For invisible imports, financial services dominated, accounting for 91.51 percent of utilisation. Business services followed with 4.37 percent, transport services with 2.58 percent and communication services with 0.84 percent.
Naira Strengthens at Official Market Amid Reduced Trading
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 percent 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 percent to $442.54 million from $605.93 million, indicating reduced trading activity during the month.
Net FX Inflow Strengthens Despite Lower Overall Inflows
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.
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.
Naira Extends Recovery in Late August
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.
