The foreign exchange market in Nigeria recorded a significant decline in activity for the week ended 18 September 2026. According to official data released by FMDQ Group Plc, the total trading turnover plummeted by 30.23% to $2,366.30m. This represents a drop of $1,025.34m from $3,391.64m recorded in the preceding week ended 11 September 2026. The decline was attributed to a decrease in both spot and derivatives transactions.
The Group Chief Operating Officer of FMDQ Group PLC, Ms Tumi Sekoni, provided insights into the performance of the local foreign exchange market. She noted that the week-on-week decrease in total turnover was driven by a 21.06% decrease in FX Spot transactions and a 93.74% decrease in FX Derivatives transactions. The significant decline in derivatives transactions was particularly noteworthy, with turnover dropping from $427.99m to $26.78m.
The contraction in market activity was most pronounced in the foreign exchange derivatives segment. The 93.74% decline in derivatives transactions was a major contributor to the overall decline in market turnover. The derivatives volume for the week comprised only FX Forwards transactions, totaling $26.78m. In contrast, the spot market also experienced a decline, with turnover contracting by 21.06% to $2,339.52m.
Despite the overall decline in trading value, spot transactions continued to dominate market operations. For the week ended 18 September 2026, spot transactions accounted for 98.87% of total turnover, while derivatives constituted the remaining 1.13%. This highlights the ongoing preference for spot transactions in the Nigerian foreign exchange market.
The daily average foreign exchange market turnover also experienced a decline. For the week ended 18 September 2026, the daily average turnover eased to $473.26m, compared to the daily average of $678.33m posted in the prior week. This reflects reduced liquidity and lower transaction volumes across both bank-to-bank and client trading windows.
The decline in market turnover and liquidity may have implications for the Nigerian economy. A decrease in foreign exchange market activity can affect the country's ability to attract foreign investment and maintain a stable exchange rate. Further analysis is needed to determine the underlying causes of the decline and potential strategies for revitalizing market activity.
The FMDQ Group Plc data provides valuable insights into the Nigerian foreign exchange market. The data highlights the need for continued monitoring and analysis of market trends to ensure stability and growth. Market participants and regulators will be watching closely to see if the decline in market activity is a temporary phenomenon or a sign of a more significant issue.
Key points
- The foreign exchange market in Nigeria recorded a 30.23% decline in total trading turnover for the week ended 18 September 2026.
- The decline was driven by a 21.06% decrease in FX Spot transactions and a 93.74% decrease in FX Derivatives transactions.
- Spot transactions continued to dominate market operations, accounting for 98.87% of total turnover for the week.
