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Nigeria’s official FX market recorded a sharp drop in weekly activity, with turnover falling by $2.57 billion as transactions slowed significantly in the latest trading period.
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Despite the decline, trading remained heavily concentrated around August 26 and 27, which together accounted for almost $2 billion of the week’s $2.71 billion turnover.
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The drop comes as the CBN says its own interventions now represent just 1.2 percent to 1.3 percent of total FX market activity, pointing to a market increasingly driven by participants rather than the apex bank.
September 01, (THEWILL) — Foreign exchange turnover in Nigeria’s official market fell sharply by 48.7 percent week-on-week to $2.71 billion in the week ended August 28, 2026, signalling a significant slowdown in trading activity.
Data from the Central Bank of Nigeria showed turnover fell from about $5.28 billion in the preceding trading week.
The latest contraction represents a reduction of approximately $2.57 billion in weekly transaction value, as activity in the Nigerian Foreign Exchange Market moderated significantly.
Trading concentrated around two days
The decline in weekly turnover came despite relatively strong activity towards the end of the week.
Transactions on August 24 amounted to $731.18 million, while the market was closed on August 25 for a public holiday.
Trading picked up on August 26, when turnover reached $913.76 million, before rising further to $1.06 billion on August 27.
However, activity subsequently eased, bringing total turnover for the four trading days in the week to $2.71 billion.
The latest figure contrasts sharply with the more than $5 billion recorded in the preceding week, pointing to a substantial week-on-week moderation in activity at the official FX market.
The decline, however, does not necessarily indicate a deterioration in the functioning of the market, as weekly turnover can fluctuate depending on the timing and size of transactions executed by banks, businesses and other market participants.
CBN says intervention remains limited
CBN Governor Olayemi Cardoso recently said the apex bank’s interventions account for only about 1.2 percent to 1.3 percent of total FX market turnover.
The governor dismissed suggestions that the CBN is aggressively intervening to influence exchange-rate pricing, arguing that the market has become more functional following a series of reforms.
According to Cardoso, the reforms include the introduction of the FX Code, an electronic trading platform and a revised foreign exchange manual.
The measures are designed to improve transparency, strengthen market conduct and create a more efficient framework for foreign exchange transactions.
The CBN has also increasingly emphasised the role of market forces in determining exchange rates, while using interventions primarily to address disorderly market conditions and improve liquidity.
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What the decline means for the FX market
The sharp fall in weekly turnover means there was less value exchanged through the official market during the latest period, but the figures need to be assessed alongside exchange-rate movements, liquidity conditions and the volume of underlying demand.
The concentration of more than $1 billion in turnover on August 27 also shows that significant transactions remain possible even within a lower weekly activity environment.
For the CBN, the latest data provide another snapshot of a foreign exchange market undergoing structural changes as the regulator seeks to shift towards greater transparency and market-driven price discovery.
The key question for market participants will be whether the decline in turnover is temporary or marks the beginning of a sustained reduction in trading activity in the official FX market.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
