Nigeria’s foreign exchange market recorded a sharp increase in trading activity in the week ended August 7, 2026, with total turnover rising to $3.73 billion, representing a 117% increase from the previous week.
The latest increase signals continued investor and market participant appetite for dollar positions amid ongoing reforms and improved activity in Nigeria’s foreign exchange market.
According to the latest weekly FX market turnover report by FMDQ Exchange, the spot market remained the dominant source of transactions, accounting for virtually all trading activity during the week.
What you should know
The latest increase in FX turnover highlights the continued recovery in activity across Nigeria’s foreign exchange market, even as weekly volumes remained below the record levels recorded in late July.
Nigeria’s FX market recorded turnover of approximately $4.4 billion in the week ended July 24, 2026, marking the highest weekly turnover recorded at the time.
The $3.73 billion recorded in the latest week therefore represents a moderation from that record level, but still reflects significantly stronger activity compared with the immediately preceding week.
The dominance of spot transactions also shows that market participants continue to rely heavily on instruments involving immediate settlement rather than longer-dated forward and derivative contracts.
What the data is saying
FX turnover jumps 117%
Total foreign exchange market turnover increased by 117% during the week ended August 7, reaching approximately $3.73 billion.
The sharp week-on-week increase points to stronger demand and increased participation in the official FX market.
The latest figure also represents a significant improvement from the previous week’s turnover, although it remains below the late-July peak of about $4.4 billion.
Spot market dominates trading
Spot transactions accounted for virtually all FX market activity during the week.
The dominance of the spot market indicates that market participants continue to favour immediate settlement of foreign exchange transactions rather than relying heavily on forward contracts and other derivative instruments.
Forward contracts and derivatives remained marginal contributors to overall turnover.
Market structure remains heavily spot-driven
The continued concentration of transactions in the spot segment highlights the structural characteristics of Nigeria’s current foreign exchange market.
While increased turnover suggests stronger liquidity and participation, the limited use of forward and derivative instruments means that the market remains heavily dependent on immediate dollar transactions.
The trend will be important to monitor as Nigeria’s FX market develops, particularly as greater use of hedging instruments could provide businesses and investors with more tools to manage exchange-rate risks.
Overall, the latest figures point to sustained strength in FX market activity, with weekly turnover remaining well above earlier levels despite moderating from the record-setting peak recorded in late July.
