FX demand hits $18.34bn as financial services dominate Nigeria’s Q2 usage

Nigeria’s foreign exchange utilisation rose to $18.34bn in the second quarter of 2026, the highest in nearly 15 years, as financial services transactions took more than half of total demand. The Financial Markets Dealers Association said the sector absorbed $9.64bn, or 52.58 per cent of total FX utilisation, during the quarter.

The FMDA’s Q2 FX market report, based on Central Bank of Nigeria data, showed total utilisation increased 12.84 per cent from $16.25bn in the first quarter and 52.42 per cent from $12.03bn in the same period of 2025. The figures point to a growing concentration of FX demand in services and financial transactions, not merchandise imports alone.

Invisible transactions drive demand

Invisible transactions, which cover payments for services and other non-merchandise items, accounted for $13.24bn, or 72.19 per cent of total FX utilisation in Q2. That was a 93.16 per cent increase from $6.85bn in the same period of 2025.

Financial services accounted for most of the increase, with demand rising 72.81 per cent from $5.58bn a year earlier. Business services demand climbed 191.39 per cent to $1.66bn from $570.41m. Other services increased 118.66 per cent to $1.12bn.

The report did not provide a detailed breakdown of the financial services transactions. It is therefore unclear how much of the demand represented investment-related payments, financial obligations or other cross-border transactions.

Import demand falls

Import-related FX utilisation declined 1.49 per cent to $5.10bn. Industrial imports fell 22.67 per cent to $1.86bn, while oil imports dropped 9.75 per cent to $1.25bn. Demand for manufactured products rose 77.73 per cent to $982.09m.

The report identified $542.56m in unallocated invisible demand, reflecting a discrepancy between the June figures and the reported aggregate.

Autonomous inflows rise as CBN sales fall

On the supply side, autonomous FX inflows strengthened their dominance, providing $23.31bn, or 74.15 per cent of total inflows during the quarter. The amount was the highest since Q1 of 2020. The report put autonomous share at 68.48 per cent in Q1 of 2026 and 63.64 per cent in Q2 of 2025.

Total FX inflows declined 2.96 per cent quarter-on-quarter to $31.43bn, although they remained 14.04 per cent above the level recorded a year earlier. CBN-sourced inflows fell 20.44 per cent to $8.12bn. The central bank’s direct FX sales to the market dropped 66.73 per cent to $418.08m from $1.26bn in Q1. Compared with $3.17bn in Q2 of 2025, CBN sales were down 86.79 per cent.

The association also reported that the central bank sold $1.67bn in FX during the first half of 2026, the lowest half-year amount since its records began in 2008. Despite the decline in total inflows, Nigeria recorded net FX flows of $22.50bn in Q2, the highest level since the fourth quarter of 2019.

The shift matters for the naira and Nigerian businesses because FX demand is increasingly tied to services and cross-border financial transactions, while CBN market sales have fallen sharply. That leaves autonomous inflows as the main source of supply.