The Nigerian foreign exchange market experienced significant growth in the week ended September 25, 2026, with total turnover across FX Spot and Derivatives markets reaching $2.63bn. This represents an 11.02% increase from the previous week. The surge was driven by strong growth in both spot and derivatives transactions. The market had previously seen a sharp 30% contraction in the week ended September 18, 2026.
The growth in the FX market is attributed to structural reforms initiated by the Central Bank of Nigeria over the past two years. These reforms include the adoption of a market-driven "willing buyer, willing seller" system and order-based quotation platforms. The reforms have helped stabilize liquidity, boost diaspora remittance flows, and allow commercial banks to execute larger transactions without relying heavily on central bank intervention.
The FX Spot market accounted for the vast majority of official trading in Nigeria, with spot transactions rising 10.62% week-on-week to $2.59bn. The daily average spot turnover increased from $467.90m to $517.59m, representing 98.51% of overall market activity. This significant growth in spot transactions contributed to the overall expansion in weekly volume.
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% to $39.21m for the week. The daily average derivative volume expanded from $5.36m to $7.84m, increasing its overall market share slightly from 1.13% to 1.49%.
The combined figures highlight a week of heightened liquidity and renewed engagement between authorized dealer banks and their clients. Average daily trading volume across the entire FX market climbed from $473.26m to $525.43m. This growth supports ongoing efforts to deepen price discovery and improve capital flows within the domestic economy.
The weekly gain marks a quick rebound for the official market window following a sharp contraction in the prior week. Total weekly turnover had dropped from nearly $3.4bn to $2.37bn due to temporary dips in derivative execution. The rebound is a positive sign for the Nigerian FX market, which has been working to stabilize and grow.
According to market data released by FMDQ Group Plc, the 11% increase in total turnover was $260.85m more than the $2.37bn recorded in the previous week. The growth is a significant development in the Nigerian FX market, which has been experiencing significant changes in recent years.
Key points
- The Nigerian FX market surged 11% to $2.63bn in the week ended September 25, 2026.
- The growth is attributed to structural reforms initiated by the Central Bank of Nigeria.
- The FX Spot market accounted for the vast majority of official trading in Nigeria.
