Nigeria’s foreign exchange market has reached a historic milestone, recording its highest weekly turnover of 2026 as trading activity surged past the $4 billion mark for the first time. According to the latest report from FMDQ Exchange, total transactions in the FX Spot and Derivatives markets climbed to an impressive $4.375 billion during the week ended July 24, representing an 83.38% increase from the previous week’s $2.386 billion. The remarkable jump has sparked widespread discussions among financial experts, with many pointing to a combination of major private-sector transactions, renewed foreign investor confidence, and unusual market activity.
The record-breaking performance was driven largely by the spot market, which accounted for 98.56% of total turnover, reaching $4.312 billion, while FX forward contracts experienced an even more dramatic rise of 333.59%, climbing to $62.87 million. Average daily turnover also surged to $875 million, almost doubling the previous week’s figure. These numbers highlight growing participation in Nigeria’s foreign exchange market and suggest that investors are becoming increasingly active in managing currency exposure amid evolving market conditions.
Although official data does not identify the exact trigger behind the unprecedented increase, market insiders believe the spike may be linked to Dangote Refinery’s temporary decision to price petroleum products in U.S. dollars before quickly reverting to naira sales. The short-lived policy is believed to have encouraged marketers to source more foreign currency while prompting investors to secure forward contracts as protection against exchange rate uncertainty. Financial analysts also noted that the country’s attractive interest rates continue to draw foreign portfolio investors seeking higher returns, adding further momentum to FX market activity.
Experts, however, believe the record turnover reflects more than routine trading. Wyoming Capital Partners Limited CEO, Tajudeen Olayinka, suggested that the market likely witnessed one or more large private-sector transactions settling within the same period. He explained that investors commonly combine spot purchases with forward contracts to hedge future exchange rate risks, allowing them to protect the value of their investments before repatriating funds. This simultaneous rise in spot and forward trading has strengthened speculation that special one-off transactions may have significantly influenced the week’s exceptional performance.
The latest figures underline the rapid expansion of Nigeria’s foreign exchange market, which has continued to deepen in recent months with cumulative turnover exceeding $46 billion between March and June 2026. While the record-breaking week reflects growing market liquidity and stronger investor participation, analysts caution that unusually large transactions can also distort short-term market trends. As regulators and investors monitor future trading patterns, attention will remain focused on whether this historic surge marks the beginning of sustained growth or simply an extraordinary week driven by unique market events.
source: nairametrics
