Financial services absorbed $9.64 billion, or 52.58 per cent, of Nigeria’s total foreign-exchange utilisation of $18.34 billion in the second quarter of 2026, as quarterly demand reached its highest level since the third quarter of 2011.
The figures are contained in the Financial Markets Dealers Association’s Q2 2026 FX Market Update, which is based on Central Bank of Nigeria data. Total utilisation rose 12.84 per cent from about $16.25 billion in the first quarter and 52.42 per cent from $12.03 billion in the same period of 2025.
Invisible Transactions Drive Demand
Invisible transactions covering services and financial payments rather than physical goods imports—dominated FX use during the quarter. Demand in this category reached a record $13.24 billion, equivalent to 72.19 per cent of total utilisation and 93.16 per cent higher than the $6.85 billion recorded in the second quarter of 2025. Financial services accounted for most of the increase.
Financial-services demand climbed 72.81 per cent to $9.64 billion from $5.58 billion, a rise of roughly $4.06 billion. Business services utilisation surged 191.39 per cent to $1.66 billion from $570.41 million, while other services rose 118.66 per cent to $1.12 billion.
By contrast, import-related demand edged down 1.49 per cent to $5.10 billion. Industrial imports fell 22.67 per cent to $1.86 billion and oil imports declined 9.75 per cent to $1.25 billion, although manufactured-product imports rose 77.73 per cent to $982.09 million.
FMDA attributed the jump in financial-services demand to cross-border investment and payment flows but provided no detailed breakdown of the transactions. As a result, the $9.64 billion cannot be characterised solely as investment repatriation or capital flight. The report also flagged $542.56 million in unallocated invisible demand because June figures did not fully reconcile with the reported total.
Autonomous Sources Supply Most of the Market
Foreign-exchange supply became more dependent on autonomous channels during the quarter, while official dollar sales contracted sharply. Autonomous inflows rose to $23.31 billion—their highest level since the first quarter of 2020 and accounted for 74.15 per cent of total FX inflows, the largest autonomous share in 13 years. That compared with 68.48 per cent in the first quarter of 2026 and 63.64 per cent a year earlier.
Central Bank FX sales dropped 66.73 per cent to $418.08 million from $1.26 billion in the previous quarter and fell 86.79 per cent from $3.17 billion in the second quarter of 2025. Total FX inflows eased 2.96 per cent to $31.43 billion but remained 14.04 per cent higher year on year. CBN-sourced inflows declined 20.44 per cent to $8.12 billion, while overall outflows fell 19.22 per cent to $8.93 billion.
Net FX flows reached $22.50 billion, the strongest since the fourth quarter of 2019. First-half net flows totalled $43.84 billion, up 47.24 per cent from a year earlier. Central Bank sales of $1.67 billion in the first half of 2026 were the lowest for any half-year period since FMDA records began in 2008. CBN outflows declined 35.89 per cent to $4.77 billion, while autonomous outflows increased 15.09 per cent to $4.16 billion.
The $22.50 billion net figure reflects the difference between reported inflows and outflows and should not be read as an equivalent increase in external reserves.
Shift Toward Services Continues
The second-quarter data underline the growing weight of financial and other services in Nigeria’s foreign-exchange market. Full-year FX demand in 2025 had already risen 91 per cent to $50.93 billion the highest in six years with invisible transactions of $30.99 billion outstripping merchandise-import demand of $19.94 billion.
In the second quarter of 2026 financial services alone accounted for more than half of total utilisation, while invisible transactions represented 72.19 per cent of demand against $5.10 billion allocated to imports. Autonomous sources supplied nearly three-quarters of total inflows.
Gross external reserves stood at $55.07 billion on 8 October, up from $54.95 billion on 2 October. FMDA’s weekly report published on 12 October described the level as the highest since December 2008.
FMDA is an industry body representing financial-market dealers in Nigeria. It compiles transaction data and promotes professional standards, market development and collaboration among participants.
