Nigeria’s foreign exchange market recorded improved liquidity in April 2026, with total turnover reaching $10 billion, according to data from the Central Bank of Nigeria (CBN).
This represents a modest 0.8% increase from $9.92 billion recorded in March. Trading activity intensified significantly, with the total number of deals rising by 28.61% to 7,889 from 6,134 in the previous month.
Segment Performance
The Nigerian Foreign Exchange Market (NFEM) remained the dominant platform, accounting for 5,795 deals valued at $8.14 billion. While the number of transactions in this segment increased by 28.18%, turnover was marginally lower than March’s $8.19 billion.
Interbank trading also showed strong momentum, with the number of deals climbing 29.82% to 2,094. Turnover in this segment rose by 7.5% to $1.86 billion, up from $1.73 billion the prior month.
Naira Appreciates in Both Markets
The local currency posted gains against the US dollar during the month. In the official NFEM window, the naira appreciated by N3.76, closing at N1,374.94/$ on April 30, compared to N1,378.70 at the beginning of the month a 0.27% gain.
In the parallel market, the currency performed even better, strengthening by N10 to close at N1,400 per dollar, representing a 0.7% appreciation from N1,410 at the start of April.
Reserves Decline but Remain Robust
Despite the improved FX liquidity, Nigeria’s external reserves declined by $810 million (1.65%) to $48.37 billion as of April 29, down from $49.18 billion.
CBN Governor Olayemi Cardoso described the dip as normal in a liberalised foreign exchange regime. “Nigeria’s reserve position remains strong, currently covering about 13 months of imports, well above international benchmarks,” he stated.
Cardoso emphasized that the FX market has transitioned from heavy central bank intervention to one driven by genuine liquidity and market confidence. He noted that short-term fluctuations in reserves are expected as investors move funds freely in and out of the country.
The Governor also highlighted ongoing efforts to boost diaspora remittances, which currently average around $600 million per month. The CBN aims to raise this to $1 billion monthly by year-end through improved access, integration of Bank Verification Numbers (BVN), and closer collaboration with commercial banks.
