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.
Data gotten from the Central Bank of Nigeria has revealed 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.
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 drop in demand coincided with softer activity in the official FX market. Average daily FX turnover declined 26.97% to $442.54 million in April, down from $605.93 million in March.
In spite of the decrease in 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.
Aggregate FX inflows fell to $8.71bn from $9.70bn, but total outflows dropped more significantly to $2.86bn from $5.54bn.
The banking system recorded a net outflow of $180m, down substantially from $1.66bn in March, while autonomous sources generated a net inflow of $6.02bn.
The CBN said the country’s external reserves stayed broadly stable at $48.32bn at the end of April, in comparison with $48.35bn in March.
The reserves provided about 10 months of import cover, significantly above the international benchmark of three months.
Weaker demand for dollars, lower FX outflows, and stronger net FX inflows eased pressure in the currency market and supported the naira’s relative stability in April.