In a significant shift in Nigeria's foreign exchange landscape, demand for foreign currency fell by 35.23% in April 2026, totaling $3.42 billion, according to the latest report from the Central Bank of Nigeria (CBN). This decline has coincided with an appreciation of the naira, which strengthened by 1.38%, reaching N1,361.22 per dollar during the same period.

The CBN's monthly economic report highlights that the reduction in foreign exchange demand has contributed to a more stable naira in the official market. Notably, Nigeria experienced a net foreign exchange inflow of $5.85 billion, despite an overall decrease in inflows compared to previous months. This marks a notable increase from $4.16 billion recorded in March.

The report indicates that visible imports accounted for 41.92% of total foreign exchange utilization, while invisible imports made up the remaining 58.08%. Among visible imports, industrial activities were the largest consumers of foreign currency, utilizing 37.44% of the total. Manufactured goods followed closely at 21.85%, with oil imports at 20.11% and food products at 14.47%. Other sectors, including transport, minerals, and agriculture, accounted for smaller percentages of FX demand.

For invisible imports, financial services dominated the landscape, consuming an impressive 91.51% of foreign exchange, while business services and transport services accounted for 4.37% and 2.58%, respectively.

As the naira appreciated, the average exchange rate improved from N1,379.98 in March to N1,361.22 in April. By the end of April, the Nigerian Foreign Exchange Market (NFEM) rate stood at N1,374.94 per dollar, showing a recovery from N1,386.72 at the end of March. However, the average daily FX turnover saw a decline of 26.97%, dropping to $442.54 million from $605.93 million, indicating reduced trading activity during the month.

Despite the overall drop in foreign exchange inflows, Nigeria's external reserves remained stable at $48.32 billion, slightly down from $48.35 billion in March. This reserve level is sufficient to cover approximately 10.01 months of imports, significantly exceeding the international benchmark of three months.

On August 20, 2026, the naira continued its upward trend, gaining N3 against the dollar at the NFEM, closing at N1,347 per dollar. The turnover in the NFEM also saw a slight increase, rising to about $371.79 million, suggesting a resurgence in trading activity as the naira maintains its recent stability.

This recent performance of the naira is a stark contrast to earlier months, where the Central Bank of Nigeria had to intervene heavily in the market. In March 2026 alone, the CBN sold $953.41 million to the market, marking its most substantial intervention since April 2025. The current trends indicate a potential easing of pressure on the naira as demand for dollars decreases significantly.