CBN: FX Inflow Slips To 2.86 BN In April On Weaker Supply
Nigeria’s foreign exchange market recorded a sharp increase in trading activity in April 2026, with total turnover on the Nigerian Foreign Exchange Market (NFEM) rising to $8.51 billion.
Also, the naira appreciated across both official and parallel markets despite persistent global pressures.
According to the April 2026 Monthly Market Report released by the Financial Markets Dealers Association (FMDA), the naira closed the month stronger at N1,361.22/$ at the official market and N1,403.60/$ at the parallel market, appreciating by 1.36 per cent and 1.18 per cent month-on-month respectively.
The report revealed that the financial system will receive about N1.06 trillion from maturing securities this week, a development likely to support liquidity conditions in the money market despite sustained liquidity mop-up operations by the Central Bank of Nigeria (CBN).
The reports also projected inflows will be driven largely by Open Market Operations (OMO) maturities, which account for about 89 per cent of the expected liquidity injection.
It stated: “The naira appreciated across both official and parallel markets, with total NFEM turnover rising to $8.51 billion in April, highlighting improved FX market activity even as external reserves continued to face pressure.”
FMDA noted that the improvement in the foreign exchange market came amid sustained liquidity management by the Central Bank of Nigeria (CBN), which continued aggressive open market operations to mop up excess liquidity from the financial system.
Analysis of market activity showed that average system liquidity declined by 25.22 per cent month-on-month to N4.84 trillion in April, driven largely by the apex bank’s tightening measures. Interbank rates, however, remained relatively stable, with the Nigerian Overnight Funding Rate (NOFR) at 22.05 per cent and Open Repo Rate (OPR) at 22.00 per cent.
Despite the tighter liquidity conditions, the report projected stronger inflows into the financial system in May. FMDA estimated total inflows of N10.53 trillion for the month, representing an increase of about 16 per cent from April levels.
According to the report, Open Market Operation maturities are expected to account for about 68 per cent of the projected inflows, with N7.17 trillion expected to mature in May, compared to N5.88 trillion in April. Treasury bills maturities are also projected at N1.05 trillion.
The report, however, warned that the CBN could continue to sterilise liquidity through additional market operations.
“Looking ahead, an estimated N10.53 trillion in inflows is projected for May, about 16% higher than April levels,” the report said, adding that “the CBN may moderate liquidity through further market operations.”
It stated: “looking ahead, N1.06 trillion is expected from maturing securities, largely driven by OMO maturities, 89 per cent.”
