Nigeria’s foreign exchange market recorded a sharp increase in trading activity during the week ended September 11, 2026, with total turnover across the spot and derivatives segments rising to $3.39 billion.
Data from FMDQ Securities Exchange showed that total FX turnover reached $3.39164 billion, representing a 40.45 per cent increase, or $976.79 million, from the $2.41485 billion recorded in the preceding week.
The latest increase reflects stronger activity in both the spot and derivatives markets, with the derivatives segment recording the most significant expansion during the period.
The FX Spot market accounted for the bulk of transactions, with turnover rising to $2.96365 billion, compared with $2.34420 billion a week earlier. This represents a 26.42 per cent week-on-week increase.
However, the strongest growth came from FX derivatives, particularly forward contracts.
Turnover in FX Forwards jumped by an extraordinary 505.79 per cent, rising from just $14.13 million in the week ended September 4 to $427.99 million in the week under review.
The surge in forward transactions points to significantly higher activity among market participants seeking to manage or hedge their foreign exchange exposure. Forward contracts allow businesses and financial institutions to agree today on an exchange rate for a currency transaction that will take place at a future date, helping them manage uncertainty associated with currency movements.
The sharp increase also suggests that participants in Nigeria’s official foreign exchange market were more active in managing future currency requirements during the period.
FMDQ’s figures indicate that the overall increase was driven by participation across the market, including authorised dealers, commercial banks and corporate clients.
The rise in trading volumes comes amid continued efforts to strengthen liquidity and deepen the country’s official foreign exchange market.
Market turnover is closely watched by investors and financial institutions because it provides an indication of the level of activity and liquidity available in the market. Higher volumes can also reflect increased demand for currency transactions and hedging instruments.
The latest figures therefore mark a substantial rebound from the relatively weaker activity recorded during the previous week.
The performance of the derivatives segment is particularly notable because its growth substantially outpaced the spot market.
While spot transactions increased by more than a quarter, forward transactions multiplied several times over within one week.
For businesses exposed to movements in the naira-dollar exchange rate, greater activity in the derivatives market could provide additional opportunities to manage currency risks.
The $3.39 billion weekly turnover consequently highlights the expanding role of both conventional spot trading and derivatives in Nigeria’s evolving foreign exchange market.
Analysts and market participants will be watching subsequent FMDQ reports to determine whether the increase represents a sustained improvement in FX market activity or a temporary spike driven by specific transactions during the week under review.
