Nigeria FX Market Turnover Rises to $2.32bn as FX Forwards Surge 129% Amid Equities Sell-Off
Nigeria’s foreign exchange market recorded a noticeable uptick in activity, with total turnover in the FX spot and derivatives segments rising 7.7% to $2.32 billion in the week ended June 19, 2026. This compares with $2.16 billion the previous week, according to data released by the FMDQ Securities Exchange. The increase highlights renewed market participation despite volatility across broader financial assets.
The growth was largely driven by stronger activity in the FX spot market, which continues to dominate trading in Nigeria. Spot transactions accounted for over 98% of total turnover and rose 6.8% week-on-week to $2.29 billion. However, the average daily trading volume declined, suggesting that while overall activity increased, it was concentrated within fewer trading sessions during the week.
The most striking development came from the derivatives segment, where FX forwards more than doubled by 129.75% to $36.14 million from $15.73 million the previous week. This sharp rise reflects growing demand for hedging tools as businesses and financial institutions seek protection against potential naira volatility in an uncertain macroeconomic environment.
Notably, FX futures remained inactive for the second consecutive week, reinforcing the continued preference for spot trading and over-the-counter forward contracts. The surge in forwards also signals that corporates and importers are increasingly locking in exchange rates ahead of future payments, a strategy aimed at reducing exposure to currency swings.
Interestingly, the FX market’s growth came at a time when Nigeria’s equities market experienced a sharp 3.59% decline in the NGX All-Share Index. The divergence suggests that FX dynamics are being driven more by import demand, liquidity positioning, and hedging activity rather than sentiment in the stock market, underscoring the FX market’s growing independence within Nigeria’s financial system.
source: nairametrics