Nigeria's Forex Market Hits $5.06bn Turnover in August

For the week ending August 21, 2026, Nigeria's foreign exchange market recorded a turnover of $5.06 billion, marking a 146.12% increase from the previous week’s $2.05 billion, according to data from FMDQ Exchange. This surge was primarily driven by spot transactions, which rose by 155.02% to $5.01 billion, accounting for 99.03% of total forex turnover.

The average exchange rate during this period was approximately N1,346.50 to the dollar, equating to about N6.81 trillion. The previous record for 2026 was $4.375 billion, achieved on July 24.

In contrast, the derivatives segment, consisting solely of FX forwards, saw a decline of 46.09% to $49 million. Tajudeen Olayinka, CEO of Wyoming Capital Partners Limited, indicated that the dollar supply suggests significant participation by foreign portfolio investors.

He warned that if domestic demand does not absorb the increased dollar inflows, the Central Bank of Nigeria may need to intervene to stabilize the naira. Abiodun Ogunniyi from GTI Securities Limited cautioned that the $5.06 billion figure reflects gross transaction values rather than fresh capital.