FX Market Liquidity Hits $10 Billion as Naira Gains Ground in April
By Aboki Forex —
Nigeria’s foreign exchange market recorded a liquidity boost in April 2026, with total turnover reaching $10 billion. Data from the Central Bank of Nigeria shows this is a slight increase from $9.92 billion in March, representing a 0.8 per cent month-on-month rise.
Trading activity surged. The number of deals jumped 28.61 per cent to 7,889 from 6,134 in the previous month. The Nigerian Foreign Exchange Market (NFEM) dominated the action, handling 5,795 deals worth $8.14 billion. Deal volume in the NFEM rose 28.18 per cent from 4,521 deals in March, though turnover dipped 0.6 per cent from $8.19 billion.
Interbank trading also grew strongly. Deals increased 29.82 per cent to 2,094, while turnover rose 7.5 per cent to $1.86 billion, up from $1.73 billion in March.
The naira appreciated against the dollar. In the NFEM, it gained N3.76, closing April 30 at N1,374.94 from N1,378.70 at the start of the month. That is a 0.27 per cent gain. In the parallel market, the naira strengthened by N10 to N1,400 per dollar, a 0.7 per cent appreciation from N1,410.
External reserves fell by $810 million, or 1.65 per cent, to $48.37 billion by April 29 from $49.18 billion. CBN governor Olayemi Cardoso said the drop is typical in a liberalised FX system. “Nigeria’s reserve position remains strong, currently covering about 13 months of imports, well above international benchmarks,” he said. He added that market-driven fluctuations are normal as investors enter and exit freely.
Cardoso noted that the FX market has shifted from central bank dominance to one fuelled by liquidity and confidence. This reduces the focus on short-term reserve shifts. He pointed to diaspora remittances averaging $600 million monthly, with a target of $1 billion by year-end. The CBN is easing access, integrating BVN, and partnering with banks to achieve this.
Analysts see the data as signs of a deepening market. They stress the need to balance liquidity gains with reserve management for exchange rate stability.