Nigeria’s foreign exchange market recorded a significant decline in trading activity during the week ended September 18, 2026, as total turnover across the spot and derivatives segments fell by 30.23 per cent to $2.37 billion.
According to data released by FMDQ Group, total FX turnover stood at $2.366 billion, compared with $3.392 billion recorded in the previous week ended September 11. This represents a decline of about $1.03 billion within one week.
The decline was driven by lower activity in both the spot and derivatives segments of the foreign exchange market. FMDQ Group Chief Operating Officer, Tumi Sekoni, attributed the week-on-week reduction to a 21.06 per cent decline in FX spot transactions and a much larger 93.74 per cent fall in FX derivatives transactions.
FX spot transactions fell to $2.34 billion during the week, from $2.96 billion recorded in the preceding week. Despite the decline, spot transactions continued to account for the overwhelming majority of activity in the market.
The spot segment represented 98.87 per cent of total FX turnover during the week, while derivatives accounted for the remaining 1.13 per cent.
The derivatives market recorded the sharpest contraction. Turnover in the segment dropped from $427.99 million to $26.78 million, representing a 93.74 per cent weekly decline. All the derivatives transactions recorded during the period were FX Forward transactions.
The decline in overall market activity was also reflected in the average daily turnover. Average daily FX turnover dropped to $473.26 million, compared with $678.33 million in the previous week.
The latest figures indicate that immediate spot transactions continued to dominate Nigeria’s foreign exchange market, while activity in instruments used by businesses and other market participants to manage future foreign exchange exposure remained considerably lower.
Meanwhile, the naira ended the week at approximately N1,331.20 per dollar at the official market, compared with N1,326.51 at the beginning of the week, representing a 0.35 per cent decline over the period.
Friday’s interbank trading activity increased to $162.67 million from $84.22 million recorded on Thursday, with the number of transactions rising from 104 to 127.
The development comes amid continued efforts to deepen Nigeria’s foreign exchange market, improve liquidity and strengthen price discovery. Changes in trading volumes are closely monitored by businesses, investors and financial institutions because foreign exchange liquidity affects the ability of companies to obtain dollars for imports, international payments and other transactions.
Nigeria’s external reserves also increased during the period. Data reported by Legit.ng showed that reserves rose by 0.33 per cent week-on-week to $54.67 billion, providing an additional buffer for the country’s foreign exchange position.
The latest decline in FX turnover, however, does not by itself indicate a corresponding movement in the naira’s value, as trading volumes and exchange rates can be affected by several factors, including dollar demand, market participation, inflows and monetary policy.
Market participants will therefore continue to monitor subsequent FMDQ data to determine whether the decline in trading activity is temporary or part of a broader change in foreign exchange market participation.
For businesses operating in Nigeria, the level of FX liquidity remains important because access to foreign currency affects import costs, international obligations and financial planning.
The September 18 figures show that while Nigeria’s FX market remains heavily concentrated in spot transactions, overall trading activity moderated considerably compared with the previous week.
