PRIVATE SECTOR FX OUTFLOWS RISE 165% TO $16.3 BILLION

Private sector foreign exchange (FX) outflows have surged by 165 per cent to $16.3 billion, according to recent data, reflecting increased demand for foreign currency by businesses and investors.

The rise in outflows highlights growing pressure on Nigeria’s foreign exchange market as companies seek dollars for imports, international payments, debt obligations, and other business-related transactions.

Analysts said the increase points to the challenges businesses face in accessing foreign currency amid exchange rate volatility and broader economic pressures.

They noted that while FX outflows are expected in an open economy, a sharp rise could place additional strain on foreign reserves and influence currency stability if not matched by stronger inflows.

Economic experts urged policymakers to focus on boosting exports, attracting foreign investment, and improving local production capacity to reduce excessive dependence on foreign currency.

The development comes as Nigeria continues efforts to stabilise the FX market, strengthen economic resilience, and create a more predictable environment for businesses and investors.