Demand for foreign exchange by end-users in Nigeria fell by 35.23 per cent to $3.42bn in April 2026, easing pressure on the dollar market as the naira recorded modest gains.

🇳🇬 Here's What Happened

Data from the Central Bank of Nigeria showed that foreign exchange utilisation across economic sectors declined during the month, while the naira strengthened at the official market.

The monthly average exchange rate improved 1.38 per cent to N1,361.22 per dollar in April from N1,379.98 in March. At the end of the month, the naira closed at N1,374.94 per dollar at the Nigerian Foreign Exchange Market, compared with N1,386.72 at the end of March.

Visible imports accounted for 41.92 per cent of total FX utilisation, while invisible imports represented the remaining 58.08 per cent.

📌 Key Details

Industrial activities were the largest users of foreign exchange among visible imports, accounting for 37.44 per cent of total utilisation. Manufactured products followed with 21.85 per cent, oil imports with 20.11 per cent and food products with 14.47 per cent.

Transport-related imports accounted for 3.54 per cent, while minerals and agriculture represented 1.47 per cent and 1.12 per cent respectively.

Within invisible imports, financial services dominated, accounting for 91.51 per cent of total utilisation. Business services represented 4.37 per cent, transport services 2.58 per cent and communication services 0.84 per cent.

The decline in demand was accompanied by weaker activity in the official foreign exchange market. Average FX turnover fell 26.97 per cent to $442.54m in April from $605.93m in March.

Despite the lower demand and turnover, Nigeria recorded a stronger net foreign exchange position during the month.

Net FX inflows rose to $5.85bn in April from $4.16bn in March, driven largely by a sharper decline in outflows.

📰 Source: Punch Nigeria