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Weekly FX turnover jumped 117% to $3.73bn by August 7.
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Spot transactions accounted for 99.33% of all activity.
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Daily average turnover more than doubled to $745.89m.
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Forward and derivative trading remained a tiny part of the market.
August 11, (THEWILL) — Nigeria’s foreign exchange market recorded one of its busiest weeks of the year, with total turnover reaching $3.73 billion in the week ended August 7.
FMDQ Exchange data shows the figure was 117% higher than the $1.72 billion recorded in the previous week. Average daily turnover also more than doubled, rising to $745.89 million from $343.75 million.
Most activity came from immediate currency transactions.
Spot trades accounted for $3.70 billion, representing 99.33% of total weekly turnover. Forward contracts and derivatives contributed about $25 million each.
That split shows how heavily Nigeria’s formal FX market still depends on spot transactions, where currencies are bought or sold for near-immediate settlement.
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Spot Trading Still Dominates
August’s jump came after an unusually active period in the FX market.
Weekly turnover crossed $4 billion for the first time this year in the week ended July 24, reaching about $4.38 billion before falling to $1.72 billion the following week.
The latest rebound, therefore, puts trading activity back above levels recorded through much of July.
Spot transactions have consistently accounted for more than 98% of weekly turnover, while exchange-traded FX futures have remained inactive. Over-the-counter forward contracts remain the main alternative for participants seeking to manage future currency exposure.
Nigeria’s FX market has also expanded considerably this year. FMDQ data showed cumulative turnover on the Nigerian Foreign Exchange Market exceeded $46 billion between March and June 2026.
High turnover, however, does not by itself indicate that the naira is strengthening or weakening. It simply shows that more foreign currency transactions took place during the period.
The composition of those transactions offers a more useful signal.
Heavy reliance on spot trades means businesses and investors continue to conduct most currency transactions through immediate settlement rather than locking in exchange rates for future transactions.
A deeper forward and derivatives market could give businesses more tools to manage exchange-rate risk, particularly during periods of tighter dollar liquidity or sharp currency movements.
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Recent trading activity has also come alongside active liquidity management by the Central Bank of Nigeria, including operations involving Open Market Operations and Treasury Bills.
For now, Nigeria’s FX market is showing two clear features at once. Trading activity has returned to elevated levels, while spot transactions continue to do almost all of the heavy lifting.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
