Nigeria’s forex inflows jump nearly tenfold but IMF warns on hot money risk
By Aboki Forex —
Nigeria’s net foreign exchange inflows have surged from $0.95 billion in 2022 to $9.22 billion in January 2026. That is an increase of about 871 percent over the period, according to data from the Central Bank of Nigeria.
The sharp rise reflects gains from sweeping economic reforms. These have boosted confidence in the foreign exchange market and strengthened the country’s external buffers.
But the International Monetary Fund has raised a red flag. In its latest Article IV consultation report on Nigeria, the IMF warned that the country remains too dependent on volatile foreign portfolio investments, often called hot money.
The Fund praised the reforms of the past three years. It said they have improved macroeconomic stability and resilience. However, it urged policymakers to aim for a more sustainable mix of capital inflows.
Specifically, the IMF called for reducing reliance on portfolio flows that carry roll-over risk. It also recommended phasing out remaining exchange restrictions, capital flow management measures, and multiple currency practices as conditions allow.
For now, the numbers show strong investor interest. But the warning is clear: hot money can leave as fast as it arrives.