NFEM turnover hits $1.45 billion as FX trading activity surges

Nigeria’s foreign exchange market recorded a sharp increase in trading activity, with total turnover on the Nigerian Foreign Exchange Market (NFEM) rising to $1.45 billion on Thursday, September 10, the highest daily level since July 21, 2026.

Nairametrics’s analysis of data from the Central Bank of Nigeria (CBN) showed that the $1.45 billion represents 167.2% surge compared with the $544.11 million recorded on September 9.

The latest turnover was also 55.8% higher than the $933.78 million recorded on September 8, marking a significant rebound in FX market activity after turnover fell below $1 billion in the previous two sessions.

The September 10 figure was the highest since July 21, when NFEM turnover reached $1.53 billion. It was, however, about 5.1% below that July peak.

What the data is saying

The increase in turnover came alongside a rise in the number of transactions, with 470 deals recorded on September 10, compared with 276 the previous day.

• Interbank activity also strengthened, with 234 interbank deals recorded, up from 86 on September 9.
• Despite the stronger trading activity, the naira weakened during the session. The currency closed at N1,328/$, compared with N1,334/$ on September 9, representing a N6 appreciation.
• The session traded between N1,322.71/$ and N1,333/$, while the weighted average rate stood at N1,328.22/$.
• The latest data therefore points to a combination of higher FX liquidity and stronger participation, rather than a one-directional movement in the exchange rate.

NFEM turnover has been relatively volatile in recent weeks. It reached $1.41 billion on August 17, $1.11 billion on August 19 and $1.06 billion on August 27 before falling to $228.52 million on August 31.

The market subsequently recorded $574.42 million on September 1, $658.46 million on September 2, $674.38 million on September 3 and $495.70 million on September 4.

Get up to speed

The increase in FX market activity comes as Nigeria’s external reserves continue to strengthen.

• Nigeria’s reserves crossed the $54 billion mark in early September for the first time since December 2008, reaching $54.08 billion as of September 3.
• The reserve position has risen steadily from $51.94 billion on August 3 to $52.06 billion on August 7, $52.32 billion on August 14, $52.83 billion on August 21 and $53.51 billion on August 28.
• The latest position has also surpassed the CBN’s projected reserve level of about $51.04 billion for the full year 2026.

Speaking on the issue, Dr Olu Olajengbesi of the University of Abuja similarly said the sustainability of the higher turnover would be more important than the size of a single day’s transaction.

• “The real test is whether this liquidity is sustained,” Olajengbesi said.

He added that sustained higher turnover, combined with stable or rising reserves and a relatively narrow exchange-rate range, would provide stronger evidence that the FX market is becoming deeper and more efficient.

Earlier, Dr Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), told Nairametrics that the sharp increase could be linked to large FX transactions by major corporate players.

• “I think it may be due to some big companies who have made huge transactions which can make a whole lot of difference,” he said.

What you should know

Nigeria’s foreign exchange market recorded its sharpest weekly turnover decline of 2026, with total transactions in the FX Spot and Derivatives markets falling 46.57% to $1.631 billion in the week ended July 10, 2026.

The $1.421 billion week-on-week decline is the largest single-week drop in FX market turnover recorded so far this year.

Nairametrics had earlier reported that FMDQ’s cumulative turnover for the January–July 2026 period reached N426.51 trillion ($310.18 billion), with FX transactions among the leading drivers alongside OMO Bills.