Nigeria Suffers 17.2% Drop in Forex Inflows

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has said that aggregate foreign exchange (FX) inflows into the nation’s economy fell by 17.2 per cent to $6.58 billion in April 2022 from the $7.95 billion recorded in the preceding month.

The CBN made this known in its April monthly report on forex flows through the economy.

The report noted that “The economy recorded a lower net foreign exchange inflow of $2.63bn from $3.53 billion in the preceding month. Aggregate foreign exchange inflow into the economy fell by 17.2 per cent to $6.58 billion in April 2022, compared with $7.95 billion in March.

“Similarly, total foreign exchange outflow decreased by 11.3 per cent to $3.95 billion from $4.45 billion in the preceding month.”

The report said further analysis showed that forex inflows through the bank declined by 25.6 per cent to $2.47 billion from $3.32 billion, mainly due to a 54.3 per cent decrease in non-oil components as a result of inflows of $1.25 billion proceeds from government debts in the preceding month, as well as TSA, third-party receipts and other official income.

Autonomous inflows also decreased by 11.4 per cent to $4.11 billion from $4.63 billion, due to a decline in invisible purchases, which included ordinary domiciliary accounts which accounted for $1.33 billion and non-oil export receipts pegged at $490 million.

Foreign exchange outflows through the bank declined by 19.3 per cent to $2.86 billion from $3.54 billion in March, due, largely, to decreases in foreign exchange sales at the Investors and Exporters window, Small and Medium Enterprises intervention (SMEI), and interbank/invisible foreign exchange windows.

Autonomous outflows increased by 20 per cent to $1.09 billion from $910 million in March, on account of increased invisible imports.

Consequently, net outflows of $390 million were recorded through the bank in April 2022, compared with net outflows of $230 million in the previous month.