MORGANABLE BUSINESS / MARKETS
Nigeria’s foreign exchange market recorded a significant increase in trading activity as total turnover across the spot and derivatives markets rose to $3.37 billion in the week ended October 9, 2026.
Akure —
Nigeria’s foreign exchange market recorded a significant increase in trading activity as total turnover across the spot and derivatives markets rose to $3.37 billion in the week ended October 9, 2026.
The latest figures from FMDQ Exchange showed that turnover increased by 98.58% from approximately $1.70 billion recorded in the previous week.
The increase represents an additional $1.67 billion in transactions compared with the week ended October 2. It also marks a strong recovery after foreign exchange trading declined during the preceding week.
However, the increase in turnover does not automatically mean that the naira has strengthened or that foreign currency has become more accessible to businesses and individuals.
FX TURNOVER NEARLY DOUBLES
According to the latest FMDQ Foreign Exchange Market Analysis Report, total turnover reached $3.36985 billion during the review period. This compares with $1.69697 billion recorded in the previous week.
The figures cover transactions in the foreign exchange spot and derivatives markets. Together, these segments provide an overview of trading activity in Nigeria’s official foreign exchange market.
The latest increase followed a decline in turnover during the week ended October 2, when total transactions fell by 35.41% to $1.70 billion. Therefore, the rebound indicates that market activity recovered considerably during the following week.
Nevertheless, weekly turnover can fluctuate because of changes in transaction volumes, market participants’ needs and the timing of large foreign exchange deals. Consequently, the latest increase should be considered alongside other indicators, including exchange rates, foreign currency supply and demand.
SPOT TRANSACTIONS DRIVE THE INCREASE
Foreign exchange spot transactions accounted for most of the activity recorded during the week. According to the report, turnover in this segment increased by 98.37% to $3.23790 billion, compared with $1.63224 billion in the previous week.
The increase added approximately $1.61 billion to spot market turnover. As a result, spot transactions represented about 96.08% of total foreign exchange turnover during the review period.
Spot transactions generally involve exchanging currencies for delivery within the applicable settlement period. Businesses, financial institutions and other market participants use these transactions to meet payment obligations and manage their foreign currency requirements.
The sharp increase therefore points to a substantial rise in spot market activity. However, the figures alone do not identify the individual participants responsible for the increase or establish whether the additional transactions came from importers, exporters, investors or financial institutions.
Daily average spot turnover also increased during the period. It rose to $647.58 million from $408.06 million recorded in the week ended October 2.
This improvement shows that trading activity increased across the reporting period rather than relying solely on the weekly total. Even so, further data will help determine whether the higher level of activity continues in subsequent weeks.
DERIVATIVES TRADING ALSO RECORDS GROWTH
The derivatives segment also contributed to the increase in total turnover. FMDQ data showed that foreign exchange derivatives turnover rose by 103.85% to $131.95 million during the week ended October 9.
The segment had recorded $64.73 million in the previous week. Therefore, turnover increased by approximately $67.22 million over the period.
The reported derivatives figures cover foreign exchange forward transactions. These agreements allow participants to arrange currency exchanges for a future date under agreed terms.
Businesses and financial institutions can use forward contracts to manage exposure to exchange rate movements. For example, an importer expecting to pay a foreign supplier later may use a forward contract to establish the exchange rate for that payment.
Although derivatives accounted for a smaller share of total turnover than spot transactions, their growth contributed to the broader increase in market activity. Their share of total turnover rose to 3.92%, compared with 3.81% in the previous week.
Daily average derivatives turnover also increased to $26.39 million from $16.18 million. This represented a notable rise in activity within the segment.
NAIRA MOVEMENT REMAINS IMPORTANT
The increase in foreign exchange turnover comes as market participants continue to monitor the naira’s performance against the US dollar. However, higher turnover and currency appreciation are different measures.
Turnover measures the value of transactions completed during a particular period. In contrast, the exchange rate reflects the price of one currency relative to another.
Therefore, a rise in trading activity does not necessarily mean that the naira will appreciate. The currency’s direction also depends on the balance between foreign currency supply and demand.
Data published by the Central Bank of Nigeria showed that the naira closed at approximately ₦1,332.49 per dollar on October 9, 2026.
The rate provides additional context for assessing developments in the official market.
Market participants will continue to monitor foreign currency inflows, import demand, investor activity and monetary policy decisions. These factors can influence liquidity and exchange rate movements over time.
IMPLICATIONS FOR BUSINESSES AND INVESTORS
The latest increase in turnover provides an important indication of activity within Nigeria’s official foreign exchange market.
Businesses that depend on imported raw materials, machinery and finished products closely monitor these developments because currency availability affects their payment arrangements.
For manufacturers, access to foreign currency remains important for purchasing equipment and production inputs from overseas suppliers.
Similarly, airlines and other service providers may require foreign currency to meet international obligations.
However, higher turnover alone cannot establish whether these businesses obtained dollars more easily or at lower exchange rates.
Their experience depends on the availability of foreign currency, transaction costs and the rates offered to individual customers.
Investors also monitor foreign exchange developments when assessing the Nigerian market. Greater trading activity can provide useful information about market participation, although investors must consider other economic and financial indicators before making decisions.
OUTLOOK FOR THE FOREIGN EXCHANGE MARKET
The next FMDQ weekly report will help establish whether the latest increase represents a sustained recovery or a temporary rise in transactions.
Market participants will also watch movements in the naira and changes in spot and forward trading activity.
Meanwhile, the Central Bank of Nigeria’s policies and the availability of foreign currency will remain important to market conditions.
Export earnings, foreign investment, remittances and demand for international payments can also influence liquidity.
For now, the increase to $3.37 billion marks a substantial rebound in weekly turnover. Spot transactions accounted for most of the growth, while derivatives activity also more than doubled.
Nevertheless, the figures should not be interpreted as proof of improved dollar access or lasting exchange rate stability.
Subsequent reports will provide a clearer picture of whether the increase continues and how market conditions develop.
Ultimately, consistent liquidity, transparent pricing and sustained foreign currency inflows will remain important to the market’s performance.
Businesses and investors will therefore continue to assess turnover alongside exchange rates and other economic indicators.
