Nigeria’s foreign exchange market recorded a sharp increase in trading activity last week, with total turnover rising to a record $4.38 billion, even as the nature of some of the transactions sparked questions among market watchers.
Data from the FMDQ Securities Exchange showed that total FX turnover for the week ended July 24, 2026, climbed by 83.38 per cent, or $1.99 billion, from the $2.39 billion recorded in the preceding week.
The latest figure represents one of the highest weekly turnovers recorded in Nigeria’s official foreign exchange market, underscoring the growing depth and activity in the market.
The surge was driven largely by the spot market, where transactions jumped by 81.85 per cent to $4.31 billion, compared with $2.37 billion recorded in the week ended July 17.
The sharp increase in spot transactions accounted for the bulk of the weekly expansion, while activity in the derivatives segment also recorded a notable rebound.
The development has, however, generated speculation among market participants, particularly because of the unusually large volume of transactions recorded within a single week.
The latest surge follows a volatile pattern in FX market activity in July. Turnover had fallen sharply to $1.63 billion in the week ended July 10, representing a 46.57 per cent decline from the $3.05 billion recorded in the previous week. It subsequently recovered to $2.39 billion in the week ended July 17 before more than doubling to $4.38 billion in the latest reporting period.
The fluctuations highlight the increasingly active nature of Nigeria’s official FX market, where trading volumes have expanded significantly in recent months amid reforms by the Central Bank of Nigeria (CBN) aimed at improving liquidity, transparency and price discovery.
Earlier data showed that daily FX turnover had frequently exceeded $500 million in the first half of 2026, with some trading sessions crossing $900 million and a record single-day turnover of $1.82 billion.
The improved liquidity has coincided with relative stability in the naira, although analysts continue to monitor the sustainability and composition of the inflows and transactions driving the increased market activity.
For the CBN, the growing turnover could be viewed as evidence of deeper participation and improved functioning of the official market. However, the sudden spikes in transaction volumes are likely to keep attention focused on the identities of market participants, the underlying demand for foreign currency and whether the transactions represent genuine commercial activity, hedging or other financial positioning.
The latest development comes as Nigeria’s external reserves continue to strengthen, with reserves recently reaching about $52 billion, providing additional support for foreign exchange liquidity and confidence in the naira.
With the official market recording increasingly large transaction volumes, the key question for policymakers and investors will be whether the surge represents a sustained structural improvement in FX market depth or a temporary spike driven by exceptional transactions.
For now, the record $4.38 billion weekly turnover marks another significant milestone for Nigeria’s FX market, while the unusual scale of activity is likely to fuel further scrutiny of the transactions behind the headline figure.
