Trading activity in Nigeria’s foreign exchange market strengthened significantly during the week ended June 26, 2026, with total market turnover rising to $2.84 billion, reflecting stronger participation across both the spot and derivatives segments.
According to the latest weekly turnover report published by FMDQ Exchange, total FX market transactions increased by $512.37 million, representing a 22.06% week-on-week growth from the $2.32 billion recorded in the previous reporting period.
The rise in turnover highlights improved market liquidity and increased trading activity within the country’s foreign exchange market.
Spot Market Continues to Dominate Trading
The FX Spot market remained the primary driver of overall market performance, accounting for nearly all transactions executed during the week.
Spot market turnover increased to $2.77 billion, representing 97.74% of total FX market activity, compared to $2.29 billion recorded in the previous week. This reflects an increase of $484.47 million, equivalent to 21.18% growth on a weekly basis.
Average daily turnover in the spot market also improved considerably, rising to $554.28 million from $457.39 million recorded a week earlier.
The strong performance suggests continued demand for immediate foreign exchange transactions by banks, corporate institutions, and other market participants.
FX Derivatives Record Strong Growth
Although the derivatives market remains relatively small compared to the spot segment, trading volumes expanded significantly during the review period.
FX Derivatives turnover rose to $64.04 million, up from $36.14 million in the previous week, representing a 77.20% increase.
Consequently, the derivatives segment accounted for 2.26% of total market turnover, compared with 1.56% in the preceding week.
Within the derivatives market, FX Forwards remained the only actively traded instrument. Turnover in FX Forward contracts increased to $64.04 million, while average daily trading volume advanced to $12.81 million, up from $7.23 million recorded in the prior week.
Meanwhile, Exchange-Traded FX Futures recorded no transactions during the reporting period, extending their streak of inactivity.
Liquidity Conditions Continue to Improve
The increase in both spot and derivatives trading points to stronger participation in the foreign exchange market and improving liquidity conditions.
Despite the growth in derivatives activity, the overwhelming concentration of transactions in the spot market indicates that most participants continue to prioritize immediate access to foreign currency rather than utilizing longer-term hedging instruments.
The uptick in FX Forward contracts, however, suggests that some market participants are increasingly seeking protection against exchange rate volatility through hedging strategies.
Market Outlook
The sustained increase in FX market turnover underscores the resilience of Nigeria’s foreign exchange market, with the spot segment continuing to serve as the backbone of overall trading activity.
For context, total turnover during the previous week ended June 19, 2026, stood at $2.323 billion, representing a 7.70% increase from the $2.157 billion recorded in the week ended June 11, 2026. That growth was likewise supported by stronger activity in both the spot and derivatives markets.
While liquidity conditions continue to improve, trading remains heavily concentrated in spot transactions. A broader adoption of derivatives products could further deepen the market by providing investors and businesses with more effective tools to manage foreign exchange risk.
