Introduction

Nigeria's foreign exchange market showed signs of recovery in the week ended September 25, 2026, as total turnover climbed 11 percent to $2.63 billion. The rebound was led by a strong resurgence in spot transactions, while derivatives posted a notable percentage gain from a much lower base.

What Happened

Total turnover rose to $2.627 billion, up from $2.366 billion the prior week, marking an 11.02 percent increase. Average daily turnover reached $525.43 million, an 11.0 percent jump from $473.26 million. FX Spot remained the dominant segment, rising 10.62 percent to $2.588 billion from $2.340 billion, accounting for roughly 95 percent of the week's overall gain. Spot's share of total turnover slipped to 98.51 percent from 98.87 percent. FX Derivatives, comprising forwards, surged 46.42 percent to $39.21 million from $26.78 million, with average daily turnover rising to $7.84 million from $5.36 million. Derivatives' share increased to 1.49 percent from 1.13 percent, though spot transactions remained roughly 66 times larger than derivatives turnover during the week.

Why This Matters

The latest data signals renewed activity in Nigeria's FX market after two consecutive weekly declines. Spot dominance underscores the market's reliance on immediate-delivery transactions, while the derivatives recovery, though promising, remains modest in absolute terms. The CBN's 350-basis-point rate cut to 23 percent, announced alongside August inflation of 15.39 percent, may aim to boost liquidity. With the naira holding relatively stable around N1,330 per dollar and external reserves crossing $55 billion—the highest level in more than 18 years—market participants will be watching whether the tentative recovery in forward contracts sustains or whether hedging demand remains subdued.

Key Takeaways

  • Total FX turnover increased 11.02 percent to $2.627 billion week-on-week.
  • Spot turnover rose 10.62 percent to $2.588 billion, driving nearly all of the weekly gain.
  • FX Derivatives surged 46.42 percent to $39.21 million, though still represent just 1.49 percent of total turnover.
  • Average daily turnover rose to $525.43 million from $473.26 million.
  • CBN cut the Monetary Policy Rate to 23 percent, citing August inflation of 15.39 percent.
  • External reserves crossed $55 billion, the highest level in more than 18 years.
  • The naira remained relatively stable around N1,330 per dollar during the period.

Conclusion

With spot trading still accounting for nearly 99 percent of turnover, the market remains heavily concentrated in immediate-delivery transactions. The derivatives segment showed signs of life but remains a distant second. As the CBN maintains an easing cycle and reserves reach multi-year highs, the coming weeks will reveal whether forward activity can build on this recovery or if trading continues to favor spot delivery amid a relatively stable naira environment.