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Financial services accounted for $9.64 billion, representing 52.58% of Nigeria’s total foreign exchange utilisation of $18.34 billion in the second quarter of 2026, as quarterly FX demand reached its highest level since Q3 2011.
This is according to the Financial Markets Dealers Association (FMDA) Q2 2026 FX Market Update, which draws on data from the Central Bank of Nigeria (CBN).
Total FX utilisation increased 12.84% from approximately $16.25 billion in Q1 2026 and 52.42% from $12.03 billion in the corresponding quarter of 2025.
Financial Services dominate FX demand:
Invisible transactions, covering services and financial payments rather than merchandise imports, accounted for the largest share of FX utilisation during the quarter. Demand in this category reached a record $13.24 billion, representing 72.19% of total utilisation.
The figure was 93.16% higher than the $6.85 billion recorded in Q2 2025, with financial services contributing most of the increase.
- Financial services demand rose 72.81% to $9.64 billion from $5.58 billion, an increase of approximately $4.06 billion.
- Business services utilisation increased 191.39% to $1.66 billion from $570.41 million.
- Other services demand rose 118.66% to $1.12 billion, while import-related demand declined 1.49% to $5.10 billion.
- Industrial imports fell 22.67% to $1.86 billion and oil imports declined 9.75% to $1.25 billion, while manufactured products increased 77.73% to $982.09 million.
FMDA linked the rise in financial-services demand to cross-border investment and payment flows, although the report did not provide a detailed breakdown of the transactions. Consequently, the $9.64 billion cannot be described solely as investment repatriation or capital flight.
The report also identified $542.56 million in unallocated invisible demand because the June figures did not fully reconcile with the reported total.
Autonomous Inflows dominate FX Supply:
Nigeria’s foreign exchange supply became more reliant on autonomous sources during the quarter, while CBN dollar sales declined substantially. Autonomous inflows increased to $23.31 billion, their highest level since Q1 2020, and accounted for 74.15% of total FX inflows.
This represented the highest autonomous inflow share in 13 years, compared with 68.48% in Q1 2026 and 63.64% in Q2 2025.
- CBN FX sales fell 66.73% to $418.08 million from $1.26 billion in Q1 and declined 86.79% from $3.17 billion a year earlier.
- Total FX inflows decreased 2.96% to $31.43 billion, although they remained 14.04% higher year on year.
- CBN-sourced inflows declined 20.44% to $8.12 billion, while total outflows fell 19.22% to $8.93 billion.
- Net FX flows rose to $22.50 billion, their highest level since Q4 2019, while first-half net flows reached $43.84 billion, up 47.24% year on year.
According to FMDA, CBN sales of $1.67 billion in the first half of 2026 were the lowest for any half-year period since its records began in 2008.
CBN outflows declined 35.89% to $4.77 billion, while autonomous outflows increased 15.09% to $4.16 billion.
However, the $22.50 billion net FX flow represents the difference between reported inflows and outflows and should not be interpreted as an equivalent increase in Nigeria’s external reserves.
Nigeria’s FX demand shifts toward Services:
The Q2 figures reinforce the growing importance of financial and other services transactions in Nigeria’s foreign exchange market. Nairametrics previously reported that total FX demand increased 91% to $50.93 billion in 2025, its highest level in six years.
Invisible transactions accounted for $30.99 billion of that amount, exceeding merchandise import-related demand of $19.94 billion, with financial services representing the largest component of invisible demand.
- Financial services alone accounted for more than half of total FX utilisation in Q2, 2026.
- Invisible transactions represented 72.19% of demand, compared with $5.10 billion allocated to imports.
- Autonomous sources supplied nearly three-quarters of total FX inflows during the quarter.
Data from the Central Bank of Nigeria (CBN) showed that Nigeria’s gross external reserves reached $55.07 billion on October 8 up from $54.95 billion on October 2, reflecting continued growth in the country’s external buffers.
FMDA corroborates the growth in foreign reserves in its latest weekly report published on Monday, October 12, describing it as the highest level since December 2008.
FMDA, an industry association representing financial market dealers in Nigeria, compiles data of financial markets transactions. It promotes best practices, professional standards, market development, and collaboration among participants in the country’s financial markets.
