Nigerian FX market surges 11% to $2.63bn

The foreign exchange market in Nigeria experienced a notable surge in activity for the week ended 25 September 2026, driven by strong growth across both spot and derivatives transactions.

According to market data released by FMDQ Group Plc, total turnover across FX Spot and Derivatives markets reached $2.63bn. This represents an 11.02 per cent increase, or an additional $260.85m, compared to the $2.37bn recorded in the previous week ended 18 September 2026.

The weekly gain marks a quick rebound for the official market window following a sharp 30 per cent contraction during the prior week, where total weekly turnover had dropped from nearly $3.4bn to $2.37bn due to temporary dips in derivative execution.

‎Over the past two years, FX activity on the FMDQ Exchange platform has expanded significantly following structural market reforms initiated by the Central Bank of Nigeria. These reforms, including the adoption of a market-driven “willing buyer, willing seller” system, order-based quotation platforms, and the clearance of legacy backlogs, have helped stabilise liquidity, boost diaspora remittance flows, and allow commercial banks and their corporate clients to execute larger transaction volumes without relying heavily on direct central bank intervention.

‎The overall expansion in weekly volume was largely underpinned by robust performance in the FX Spot market, which continues to account for the vast majority of official trading in the country.

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‎Spot transactions rose 10.62 per cent week-on-week, growing by $248.42m to settle at $2.59bn compared to $2.34bn in the week ended 18 September. This increase lifted the daily average spot turnover from $467.90m to $517.59m, representing 98.51 per cent of overall market activity.

‎Concurrently, the FX Derivatives segment, comprising FX Forwards, saw a substantial proportional increase following a slowdown earlier in the month. Turnover in derivatives jumped 46.42 per cent, climbing from $26.78m to $39.21m for the week.

‎The $12.43m weekly gain boosted the daily average derivative volume from $5.36m to $7.84m, expanding its overall market share slightly from 1.13 per cent to 1.49 per cent.

‎Overall, average daily trading volume across the entire FX market climbed from $473.26m to $525.43m. The combined figures highlight a week of heightened liquidity and renewed engagement between authorised dealer banks and their clients across both immediate and forward settlement windows, supporting ongoing efforts to deepen price discovery and improve capital flows within the domestic economy.