FX inflows hit $3 billion in January as yields lure offshore portfolio capital 

International portfolio buyers (FPIs) lifted Nigeria’s international change inflows to $3.0 billion in January 2026, a 7% month-on-month improve, as elevated home yields continued to draw offshore capital.

In keeping with knowledge launched by FMDQ, the advance marks the second consecutive month of restoration in FX provide.

The event reinforces indicators of regularly strengthening liquidity circumstances that started to emerge towards the top of 2025, with portfolio flows taking part in a central position in stabilising the market.

What the info is saying

FMDQ knowledge present that the 7% month-on-month rise in FX inflows to $3.0 billion in January was largely pushed by international portfolio buyers looking for excessive returns in Nigeria’s fixed-income market.

Portfolio inflows greater than doubled through the month, underscoring the affect of short-term capital in shaping liquidity circumstances.

• International portfolio funding inflows surged by 151% month-on-month to $1.6 billion.
• About 98% of complete portfolio inflows, equal to roughly $1.5 billion, was channelled into fixed-income securities, whereas equities attracted $38.7 million.
• Worldwide company inflows rose 83% to $155.4 million, whereas international direct funding edged up marginally by $2 million to $50.3 million.
• Offshore capital accounted for the majority of FX provide development, whilst home sources weakened total.

The information point out that Nigeria’s high-yield atmosphere, supported by tight financial coverage and engaging sovereign debt returns, continues to anchor exterior participation within the FX market.

Extra insights 

The surge in portfolio inflows highlights the decisive position of short-term capital flows in sustaining FX liquidity.

Elevated rates of interest have enhanced Nigeria’s attraction amongst world buyers trying to find yield, significantly inside treasury payments and bond devices.

• The home fixed-income market absorbed almost all portfolio inflows, reinforcing its dominance as the first vacation spot for international capital.
• The equities market remained a marginal beneficiary of offshore flows through the month.
• Stronger exterior participation diminished stress on the foreign money market and moderated volatility within the naira.

Improved FX liquidity has additionally lessened the speedy want for heavy official intervention, supporting a extra market-driven provide dynamic.

Why this issues 

With offshore inflows strengthening, reliance on the Central Bank of Nigeria (CBN) declined considerably in January.

• The CBN contributed simply $34 million to FX provide, down sharply from $654 million recorded in December.
• Home exporter inflows fell 15% month-on-month to $582 million.
• Inflows from people declined 39% to $168.7 million.
• Non-bank corporates recorded a modest 2.4% improve in inflows to $430.4 million, accounting for about 14% of complete market provide.

The evolving composition of FX provide alerts rising dependence on international capital slightly than home sources or official intervention.

Whereas this shift helps near-term liquidity, the sustainability of the development hinges on continued investor confidence and coverage consistency.

What you need to know 

Nigeria’s international change market has proven strengthening indicators in early 2026, constructing on improved liquidity circumstances noticed towards the top of 2025.

This has boosted Nigeria’s exterior reserves, which rose to about $46 billion by late January 2026, marking the best stage in roughly eight years.

• The reserve build-up displays stronger exterior inflows and improved FX buffers in contrast with earlier intervals of volatility.
• Earlier episodes of subdued FX inflows had heightened stress on the naira attributable to decrease liquidity.
• Current reserve features have coincided with relative foreign money stability and renewed investor confidence.
• Sustained participation from international buyers, significantly in fixed-income markets, alongside stronger reserves, offers financial authorities with larger coverage flexibility.

Continued FX inflows by 2026 might additional ease stress on the naira and regularly scale back the necessity for official intervention, although changing short-term portfolio flows into sturdy funding commitments stays a broader structural problem.