Nigeria's FX spot market hits record $5bn as weekly turnover surges 146%

Nigeria's foreign exchange market recorded an exceptional jump in spot transactions in the week ended 21 August, with the value of immediate currency trades crossing $5 billion for the first time in 2026. FMDQ Exchange data showed FX spot turnover rose 155.02 per cent to $5.01bn in the week, from $1.96bn recorded in the preceding week.

The sharp increase propelled total turnover across the FX spot and derivatives markets to a record $5.06bn for the year, up 146.12 per cent from $2.05bn a week earlier. At an average exchange rate of N1,346.50 to the dollar, the transactions were worth approximately N6.81tn.

Spot transactions dominate market activity

The figures show that the expansion in Nigeria's currency market was almost entirely driven by spot transactions, rather than forward contracts. Spot trades accounted for 99.03 per cent of total weekly FX turnover, compared with 95.58 per cent in the previous week. This left forwards with only 0.97 per cent of market activity.

The dominance of spot trading was further reflected in average daily turnover, which climbed to about $1bn from $443.22m the previous week. Spot transactions increased by about $3.05bn week-on-week, while total market turnover rose by approximately $3bn.

In other words, the entire net expansion in weekly FX activity came from spot transactions, with the decline in forward trading actually offsetting a small portion of the increase.

Forward market thins out

Meanwhile, FX forwards fell 46.09 per cent to $49m from $90.89m. Average daily forward turnover consequently dropped to $9.8m from $18.18m, reducing the segment's contribution to the overall market to less than one per cent.

The reversal is notable because forwards had recorded a 263.56 per cent increase just a week earlier, suggesting that activity in the hedging segment remains relatively thin and volatile.

Pattern of sharp swings continues

The latest record continues a pattern of sharp swings in Nigeria's weekly FX turnover. Market activity moved from $2.32bn in the week ended 19 June to $2.84bn a week later and $3.05bn by early July. Turnover subsequently fell to $1.63bn before rebounding to $2.39bn and then reaching $4.38bn in the week ended 24 July.

For Nigerian businesses, the data underlines a currency market that is still heavily reliant on spot deals, with hedging tools playing only a marginal role. That leaves forward visibility limited for firms planning imports or other foreign currency obligations.