Nigeria's Dollar Trading Drops 22% Amid Forward Deal Decline

The value of dollars traded in Nigeria's foreign exchange market fell by 22.23% to $2.62 billion in the week ending October 16, 2026, down from $3.37 billion the previous week. This decline, amounting to $749.15 million, was attributed to a slowdown in spot trading and a sharp drop in forward transactions.

According to the latest report from FMDQ, forward transactions decreased by 81.14% to $24.89 million from $131.95 million, representing only 0.95% of total turnover, a decrease from 3.92%. Spot transactions also fell by 19.83% to $2.60 billion from $3.24 billion, accounting for a decline of $642.09 million.

Spot trading constituted approximately 85.7% of the dollar decline, while forward transactions made up about 14.3%. Despite the significant percentage drop in forward turnover, the Naira appreciated across contract tenors in Nigeria's money market.