Nigeria’s FX turnover plunges to $2.71bn in one week

Foreign exchange turnover in Nigeria’s official market fell by 48.7 per cent week-on-week to $2.71 billion in the week ended August 28, 2026, reflecting a sharp moderation in trading activity from the previous week.

Data from the Central Bank of Nigeria (CBN) showed that turnover declined from approximately $5.28 billion recorded in the preceding trading week.

Trading activity was concentrated around August 26 and 27, with transactions worth $913.76 million and $1.06 billion recorded on the two days respectively.

The market recorded turnover of $731.18 million on August 24, while trading was suspended on August 25 due to a public holiday.

The latest decline follows a week in which transactions in the Nigerian Foreign Exchange Market exceeded $5 billion, pointing to a significant reduction in trading volumes in the official market.

The development comes as the CBN continues to implement reforms aimed at improving the efficiency, transparency and price discovery mechanisms of Nigeria’s foreign exchange market.

CBN limits direct market intervention

CBN Governor Olayemi Cardoso previously disclosed that the apex bank’s interventions now account for only about 1.2 per cent to 1.3 per cent of total foreign exchange market turnover.

He said the relatively small share demonstrated that the CBN was no longer relying heavily on direct intervention to influence exchange-rate pricing.

According to Cardoso, improvements in market functioning have been supported by measures including the FX Code, electronic trading platforms and the revised Foreign Exchange Manual.

The reforms are intended to strengthen transparency, improve market conduct and support more efficient foreign exchange price discovery.

The CBN has also maintained that stronger external buffers are providing Nigeria with greater capacity to manage external shocks and support confidence in the foreign exchange market.

Reserves remain above $53bn

Despite the decline in market turnover, Nigeria’s external reserves remained above the $53 billion mark during the period.

CBN data showed that the country’s foreign exchange reserves stood at $53.11 billion as of August 24, 2026.

The level of reserves provides an important buffer for the economy, particularly amid fluctuations in global financial markets, commodity prices and foreign exchange flows.

However, the sharp week-on-week reduction in FX turnover will remain an important indicator for market participants as they assess liquidity, demand and trading depth in the official market.

A sustained improvement in market liquidity and transparent price discovery will remain critical to the CBN’s broader efforts to strengthen Nigeria’s foreign exchange market and support macroeconomic stability.