Nigeria recorded a significant rise in foreign exchange inflows in October 2025, with total receipts hitting $5.15 billion, according to data from the FMDQ Exchange. The figure represents a 62.2% increase compared to the $3.18 billion recorded in September — the highest monthly level in five months.
The surge was largely driven by renewed foreign portfolio investor (FPI) participation in the Central Bank of Nigeria’s (CBN) Open Market Operations (OMO) auctions, where elevated yields have continued to attract offshore interest.
Between early and late October, the CBN conducted six OMO bill auctions, raising more than ₦7 trillion from deposit money banks (DMBs) and foreign investors — the key participants in the short-term securities market.
Market analysts say the attractive yield environment and improved investor sentiment have boosted dollar inflows, helping to stabilise the naira. The increased demand for local currency from foreign investors also strengthened the exchange rate in both official and parallel markets.
According to the FMDQ report, foreign inflows accounted for 64.5% of total receipts in October, rising 89.7% month-on-month to $3.32 billion from $1.75 billion in September.
Investment firm Cordros Securities Limited, in its market update, attributed the surge to stronger foreign portfolio participation and higher inflows from corporates, offsetting a decline in foreign direct investment (FDI).
“The significant rise reflected strong participation from both foreign and domestic investors, supported by improving market sentiment and the global shift toward monetary policy easing,” the firm noted.
Cordros added that FPI inflows jumped 120.7% month-on-month in October, while inflows from “Other Corporates” increased by 30.5%. In contrast, FDI fell by 25.5% during the same period.
Domestic inflows also rose 28.4%, supported by strong participation from individuals — up 370.6% — and a 30.8% increase from corporate investors.
The uptick in inflows reflects renewed confidence in Nigeria’s financial markets following recent foreign exchange reforms and tighter liquidity management by the CBN under its current monetary policy framework.
Analysts believe the trend could continue through the final quarter of the year, driven by sustained investor appetite for high-yield Nigerian instruments.
“We expect total foreign exchange inflows from both domestic and foreign sources to remain robust, surpassing the 2024 average level of $2.51 billion, driven by sustained market confidence and still-attractive carry-trade opportunities,” Cordros Securities stated.
The rising inflows come as the CBN intensifies efforts to deepen liquidity in the FX market, stabilise the naira, and strengthen external reserves amid global shifts in monetary policy and capital flows.