NAFEM turnover surged to $1.41 billion on August 17, 2026, marking its highest level in five weeks as trading activity in Nigeria’s official foreign exchange market bounced back sharply. Data from the Central Bank of Nigeria (CBN) showed that the latest figure was more than seven times the $185 million recorded on August 11, when FX market activity fell to an 11-week low.
The sharp rebound signals a significant return of activity to the Nigerian Foreign Exchange Market after several subdued trading sessions. NAFEM recorded 394 deals, including 178 interbank transactions, with turnover rising from $185 million on August 11 to $607.47 million on August 12 and $387.09 million on August 13. Activity stood at $352.34 million on August 14 before jumping dramatically to $1.41 billion on August 17.
The surge in turnover also came alongside a stronger naira at the official market. The naira closed at N1,350/$ on August 17, improving from N1,358.25/$ recorded on August 14. The latest closing rate was also stronger than the N1,365/$ recorded on August 11, when NAFEM turnover hit its recent low. The weighted average exchange rate stood at N1,349.54/$, suggesting that increased FX activity was accompanied by relative stability in the currency.
However, analysts have urged caution in interpreting the sharp rise as evidence of a sustained improvement in FX market liquidity. Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, suggested that the spike could have been influenced by large transactions from major corporate players, including businesses importing raw materials, machinery and other inputs. Dr Olu Olajengbesi of the University of Abuja similarly noted that the real test would be whether higher turnover continues over several weeks alongside stable reserves and a relatively narrow exchange-rate range.
For now, the latest NAFEM turnover figures point to a notable recovery in Nigeria’s official FX market following the sharp slowdown earlier in August. The development comes as Nigeria’s external reserves have also strengthened, reaching $52.02 billion in July, according to earlier CBN data. While the $1.41 billion turnover provides an encouraging sign of renewed market participation, sustained liquidity and stability will be crucial in determining whether the latest rebound represents a lasting improvement or simply a temporary spike driven by a handful of major transactions.
source: nairametrics
