Nigeria’s foreign exchange market recorded its highest weekly turnover of 2026, with total transactions in the FX Spot and Derivatives segments jumping 83.38% to $4.375 billion in the week ended July 24.
The figure, according to data from FMDQ Exchange, marks the first time weekly turnover has crossed the $4 billion threshold this year. Average daily turnover rose to $875 million, up from $477.16 million the previous week.
Sharp Gains Across Segments
FX Spot transactions dominated activity, reaching $4.312 billion and 81.85% increase and accounting for 98.56% of total turnover. FX Forwards also surged dramatically, rising 333.59% to $62.87 million.
The scale of the increase, nearly $2 billion week-on-week, far exceeds the more moderate fluctuations seen in previous weeks, when turnover ranged between roughly $1.6 billion and $3.05 billion.
Speculation Over Drivers
Market participants have linked the unprecedented spike to a combination of large private-sector transactions and increased foreign portfolio inflows. An industry insider at the Financial Market Dealers Association pointed specifically to Dangote Refinery’s brief decision to price petroleum products in dollars, a policy that lasted about a week before being reversed.
Tajudeen Olayinka, Chief Executive Officer of Wyoming Capital Partners Limited, suggested the surge was likely driven by concentrated large one-off deals rather than routine market activity. He noted that high interest rates continue to attract foreign portfolio investors seeking attractive yields, while the sharp rise in forward contracts indicates investors were simultaneously executing trades and hedging future currency risks.
“There may be a link. If somebody is selling in the spot market, they may also be buying forwards so they can hedge and be certain of the rate at which they will repatriate their money,” Olayinka said.
Broader Market Context
The record turnover coincides with a period of deepening liquidity in the Nigerian Foreign Exchange Market. Cumulative turnover between March and June 2026 exceeded $46 billion, with spot deals consistently accounting for more than 98% of weekly activity. Exchange-traded FX futures remained inactive, leaving over-the-counter forwards as the main hedging tool.
While the brief dollar-pricing policy at Dangote Refinery may have temporarily boosted demand for foreign exchange and encouraged greater hedging, the scale of the jump has fuelled speculation about additional large private transactions settling during the week.
The latest figures underscore the growing depth of Nigeria’s official FX market, even as the sharp swings in weekly turnover continue to raise questions about the underlying drivers of liquidity.
