Nigeria’s Foreign Exchange Market Hits $4.4 Billion Turnover as Weekly Activity Surges

Nigeria’s foreign exchange market logged its strongest weekly performance of 2026, with spot and derivatives turnover reaching $4.4 billion for the first time.

Transactions rose 83.4% to $4.375 billion in the week ending 24 July, up from $2.386 billion the previous week.

Data from the FMDQ Exchange indicated that this performance surpassed the previous peak of $3.053 billion recorded in the week ending 3 July, highlighting a marked rise in activity across the official market.

The FMDQ report documented broad‑based growth. Spot transactions increased 81.9% to $4.312 billion from $2.371 billion, and FX forward turnover surged 333.6% to $62.87 million, compared with $14.50 million the prior week. Average daily turnover rose to $875 million, up from $477.2 million.

Despite the increase in forward contracts, the spot market remained dominant, accounting for 98.6% of total turnover, while forwards contributed 1.4%, up from 0.6% the previous week.

The latest figure marks the largest weekly increase of the year, with turnover climbing by nearly $2 billion in a single week. Trading volumes had ranged between $2.1 billion and $2.8 billion for much of June, rose to $3.053 billion in early July, dipped to $1.631 billion, recovered to $2.386 billion, and now reached a record $4.375 billion.

The cause of the surge in FX deals remains unclear. Some analysts pointed to Dangote Refinery’s brief announcement on 14 July that it would sell petrol, diesel and aviation fuel in U.S. dollars rather than naira, though that decision lasted only about a week before being reversed.

‘It is likely a combination of several factors,’ said emerging‑market analyst Ike. ‘It could stem from strong corporate FX demand or portfolio rebalancing, or from the settlement of previously negotiated deals or offshore debt servicing. While other explanations may exist, the development generally signals increased market confidence.’

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