Turnover on Nigeria’s official foreign exchange market (NAFEM) surged to $1.41 billion on Monday, August 17, 2026, marking its highest level in five weeks as trading activity rebounded sharply.
Data from the Central Bank of Nigeria (CBN) showed that the latest turnover was more than seven times the $185 million recorded on August 11, when market activity fell to its lowest level in 11 weeks.
The $1.41 billion turnover is also the highest recorded since July 21, when the market posted $1.53 billion in transactions.
The latest increase followed a period of subdued activity in the foreign exchange market. Turnover rose to $607.47 million on August 12 before declining to $387.09 million on August 13 and $352.34 million on August 14.
A total of 394 deals were recorded on August 17, including 178 interbank transactions.
The sharp rise in market activity coincided with further strengthening of the naira at the official market.
The local currency closed at N1,350 per dollar on August 17, compared with N1,358.25/$ on August 14, representing an appreciation of N8.25, or about 0.6 per cent.
The weighted average exchange rate stood at N1,349.54/$, while the simple average was N1,350.98/$.
The naira has now strengthened from N1,368/$ at the end of July to N1,350/$ on August 17, its strongest closing level since April 22.
Analysts caution against reading too much into surge
Analysts attributed the sharp increase in turnover partly to the possibility of large foreign exchange transactions by major corporate players.
Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, said the surge could have been driven by large companies making substantial FX purchases for imports of raw materials, machinery and other inputs.
He also noted that government projects requiring significant foreign inputs could have contributed to the increase.
However, Yusuf cautioned that the jump may not necessarily represent a broad-based increase in demand across the market.
Similarly, Dr Olu Olajengbesi of the University of Abuja said the sustainability of the increased liquidity would be more important than a single-day surge.
According to him, sustained higher turnover over several weeks, alongside stable or improving external reserves and a relatively narrow exchange-rate range, would provide stronger evidence of a deeper and more efficient FX market.
The latest CBN figures therefore point to a significant rebound in official foreign exchange trading after the sharp slowdown recorded earlier in August.
Nigeria’s external reserves had also risen to $52.02 billion as of July 20, their highest level since January 2009, providing additional support for foreign exchange liquidity and market stability.
