Nigeria’s foreign exchange utilisation increased by 52.4% to $18.34 billion in the second quarter of 2026, compared with $12.03 billion in the corresponding period of 2025, according to data from the Central Bank of Nigeria (CBN).
However, financial and other non-merchandise transactions accounted for more than 72% of the total, highlighting the growing concentration of foreign exchange demand outside the importation of physical goods.
The latest figures, contained in the CBN’s second-quarter statistical data, showed that foreign exchange utilisation also increased by 12.8% from $16.25 billion recorded in the first three months of the year.
Invisible transactions, which include financial payments and services, accounted for $13.24 billion, compared with $6.85 billion in the second quarter of 2025.
This represented a year-on-year increase of 93.2%, substantially exceeding the growth recorded in overall foreign exchange utilisation.
Financial services remained the largest component, accounting for $9.64 billion, equivalent to 52.6% of all foreign exchange utilised during the quarter.
The amount was significantly higher than the $5.58 billion recorded a year earlier.
Business services also recorded a substantial increase, rising to $1.66 billion from $570.41 million in the corresponding period of 2025.
The figures indicate that Nigeria’s foreign exchange requirements are increasingly influenced by international financial transactions and service-related payments rather than merchandise imports alone.
However, the available data do not establish how much of the financial services component represents investment repatriation, offshore obligations or other cross-border transactions.
Consequently, the increase cannot automatically be interpreted as capital flight.
Foreign Exchange Demand for Goods Declines
While invisible transactions expanded, foreign exchange utilisation for merchandise imports declined by 1.5% to $5.10 billion.
Industrial imports accounted for $1.86 billion, representing a 22.7% decline from the corresponding period of 2025.
Foreign exchange utilised for oil-related imports also declined by 9.8% to $1.25 billion.
In contrast, utilisation for manufactured products increased by 77.7% to $982.09 million.
The contrasting movements suggest that foreign exchange demand is changing across different segments of the economy.
For manufacturers, lower recorded utilisation for industrial imports does not necessarily indicate reduced dependence on foreign raw materials or machinery.
It could also reflect changes in import volumes, purchasing decisions, financing arrangements or the timing of transactions.
Similarly, higher utilisation for manufactured goods may reflect changes in prices and import demand rather than an equivalent increase in physical quantities.
Private Sources Dominate Dollar Supply
On the supply side, Nigeria recorded $31.43 billion in foreign exchange inflows during the quarter, down 3% from approximately $32.39 billion in the preceding three months.
Autonomous sources, including private-sector foreign exchange flows, contributed $23.31 billion, representing 74.2% of total inflows.
The CBN’s direct foreign exchange sales declined sharply to $418.08 million from $1.26 billion in the first quarter.
Compared with $3.17 billion recorded in the corresponding period of 2025, the reduction was approximately 86.8%.
The decline in central bank intervention, alongside the increased contribution of autonomous sources, suggests that private market participants are playing a larger role in supplying foreign currency.
However, the sustainability of this arrangement will depend on the consistency of inflows, investor confidence and the ability of the market to accommodate fluctuations in dollar demand.
Nigeria’s net foreign exchange flows reached $22.50 billion during the quarter as total outflows declined to $8.93 billion.
Although this represents an improvement in the reported balance of foreign exchange flows, it should not be confused with an equivalent increase in the country’s external reserves.
For businesses and investors, the latest figures present two important developments: greater foreign exchange activity and a growing concentration of demand in financial and service-related transactions.
The distinction matters because stronger foreign exchange utilisation does not necessarily translate into increased domestic production, industrial investment or employment.
Sustaining the improvement in market liquidity while expanding foreign exchange availability for productive businesses will remain important to Nigeria’s broader economic performance.
