Reported by Weng Patrick Atokor l Journalist at Weng Global
Nigeria’s foreign exchange market recorded a rebound in trading activity in the week ended September 25, 2026, with combined turnover across FX spot and derivatives transactions rising 11.02% to $2.627 billion.
The increase followed a weaker trading performance in the preceding week and was driven primarily by stronger spot-market activity, alongside a recovery in foreign exchange derivatives trading, according to the latest FMDQ market data reported by Nigerian financial publications.
The latest figures highlight renewed activity in Nigeria’s foreign exchange market even as the naira remained relatively stable during the period.
FX turnover rises by $260.85 million
Total FX turnover increased by $260.85 million from $2.366 billion recorded in the week ended September 18 to $2.627 billion in the latest reporting week.
The 11.02% increase represented a reversal from the 30.23% decline recorded in the previous week, when total turnover fell from $3.392 billion to $2.366 billion.
Average daily turnover also increased to approximately $525.43 million from $473.26 million in the preceding week.
The latest improvement therefore reflected increased transaction activity across the market after the sharp contraction recorded in the week to September 18.
Spot transactions remain dominant
The spot segment continued to account for the overwhelming majority of Nigeria’s FX market activity.
FX spot turnover rose 10.62% to $2.588 billion during the week, compared with $2.340 billion in the previous week.
The increase of about $248.42 million accounted for roughly 95% of the overall weekly increase in combined FX turnover.
Spot transactions consequently represented about 98.51% of total FX spot and derivatives turnover during the week.
This means that, despite the recovery in derivatives trading, transactions involving immediate foreign-exchange delivery continued to dominate activity in Nigeria’s market.
Derivatives trading rebounds
Foreign exchange derivatives also recorded a notable percentage increase during the week.
Turnover in the derivatives segment, which comprised FX forward transactions, rose 46.42% to $39.21 million from $26.78 million in the previous week.
Average daily derivatives turnover increased to approximately $7.84 million from $5.36 million.
However, the derivatives market remained considerably smaller than the spot market in absolute terms. The $39.21 million recorded in the latest week was also substantially below the $427.99 million recorded during the week ended September 11.
The figures therefore show that the latest increase in derivatives activity represents a recovery from the unusually low level recorded in the preceding week, rather than a return to the much higher levels seen earlier in September.
Market activity had fallen sharply the previous week
The latest rebound becomes clearer when viewed against the market’s recent movements.
For the week ended September 18, total FX turnover declined by 30.23% to $2.366 billion, according to FMDQ data reported by The PUNCH.
Spot turnover fell 21.06% to $2.340 billion, while derivatives turnover plunged 93.74% to $26.78 million.
The sharp decline in derivatives activity was particularly significant because the derivatives segment had recorded an unusually strong increase just one week earlier.
During the week ended September 11, total FX turnover reached approximately $3.392 billion. Spot transactions accounted for $2.964 billion, while derivatives turnover surged to $427.99 million, representing a 505.79% weekly increase.
The movements demonstrate how quickly weekly turnover can change depending on activity in both spot and forward markets.
Naira remains relatively stable
The increase in FX trading activity occurred against a backdrop of relative stability in the naira.
Nairametrics reported that the naira traded around N1,330 per dollar during the latest week, with the currency closing at approximately N1,330/$ on September 25 compared with N1,329/$ at the end of the previous week.
The relatively narrow movement came amid improved foreign-exchange liquidity and stronger external reserves.
Nigeria’s external reserves had crossed $55 billion, according to recent reporting, providing additional foreign-exchange liquidity in the market.
CBN cuts benchmark interest rate
The FX market rebound also came during a significant period for Nigeria’s monetary policy.
The Central Bank of Nigeria reduced its Monetary Policy Rate by 350 basis points to 23% following its Monetary Policy Committee meeting held on September 21 and 22.
The decision marked a major change from the previous 26.5% benchmark.
At the same time, headline inflation had moderated to 15.39% in August from 15.43% in July, according to figures reported from the National Bureau of Statistics.
The combination of changing monetary policy, relatively stable exchange rates and improved FX liquidity provides important context for developments in the foreign exchange market.
However, the weekly increase in FX turnover should not by itself be interpreted as evidence of a permanent change in market conditions.
Why the latest figures matter
Foreign exchange turnover provides an indication of the level of trading activity involving banks, authorised dealers and their clients.
Higher turnover can reflect increased demand for foreign currency, greater availability of liquidity, corporate transactions, investment-related activity and other market flows.
For Nigerian businesses, exchange-rate stability and access to foreign currency are particularly important for companies involved in imports, international payments, manufacturing, aviation, energy and other sectors with significant foreign-exchange exposure.
The strong dominance of spot transactions also remains significant.
With spot trades accounting for more than 98% of combined turnover during the latest week, the Nigerian FX market continues to rely heavily on transactions involving immediate delivery of foreign currency. Derivatives, including forwards, remain a much smaller part of overall market activity.
Forward contracts can allow businesses and other market participants to manage future currency exposure by agreeing on exchange rates for transactions that will be settled later.
The wider September picture
The latest weekly figure also needs to be considered alongside the sharp swings recorded earlier in September.
FX turnover climbed to about $3.39 billion in the week ended September 11 after derivatives activity increased sharply. It then dropped to $2.366 billion in the following week before recovering to $2.627 billion in the week ended September 25.
This pattern suggests that weekly turnover has remained sensitive to changes in spot and derivatives transactions.
The latest increase was therefore substantial enough to reverse the previous week’s decline, but it remained below the $3.39 billion recorded earlier in the month.
It was also far below the 2026 weekly high of about $5.06 billion recorded for the week ended August 21, when total FX spot and derivatives turnover more than doubled from the previous week.
A distinction between FMDQ turnover and NFEM data
It is important to distinguish the FMDQ FX turnover figures from turnover reported for Nigeria’s Foreign Exchange Market by the Central Bank of Nigeria.
Recent CBN-related reporting showed NFEM turnover declining during the week ended September 25, while the broader FMDQ spot-and-derivatives measure rose to $2.627 billion.
The difference reflects the fact that the figures refer to different market measures and should not be treated as interchangeable.
For readers and businesses following Nigeria’s currency market, identifying the source and definition of a turnover figure is therefore important when comparing weekly market performance.
What happens next
Market participants will be watching subsequent weekly data to determine whether the recovery in FX activity continues.
Particular attention is likely to remain on spot-market liquidity, the level of forward transactions, the naira’s exchange-rate movements and the impact of the CBN’s new 23% monetary-policy rate.
The next FMDQ market reports should provide further evidence on whether derivatives activity continues to recover from its sharp decline earlier in September and whether overall FX turnover maintains the latest rebound.
For now, the September 25 figures show a foreign exchange market that recorded stronger weekly activity, with spot transactions providing the bulk of the increase while derivatives trading recovered from a particularly weak previous week.
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Sources
- FMDQ Exchange — weekly FX market turnover data for the week ended September 25, 2026, as reported and analysed by Nairametrics.
- The PUNCH — report on Nigeria’s FX market turnover for the week ended September 25, 2026.
- The PUNCH — report on the 30.23% decline in FX turnover for the week ended September 18, 2026.
- Nairametrics — analysis of the September 11 FX turnover rebound and derivatives activity.
- Central Bank of Nigeria/NFEM data as reported by Nairametrics.
