NAFEM Records $1.41 Billion Turnover as FX Market Activity Surges

Nigeria's foreign exchange market experienced a significant uptick in activity on August 17, 2026, with turnover on the Nigerian Foreign Exchange Market (NAFEM) reaching $1.41 billion. This figure marks the highest level recorded in five weeks, signaling a robust recovery in trading after a notable decline earlier in the month.

Data released by the Central Bank of Nigeria (CBN) indicates that the $1.41 billion turnover on August 17 was more than seven times the $185 million transacted on August 11. This latest performance represents the strongest market activity since July 21, when NAFEM turnover stood at $1.53 billion. During the August 17 trading session, a total of 394 deals were executed, which included 178 interbank transactions.

The increase in market activity follows a period of considerable volatility in foreign exchange transactions. Turnover had initially risen to $607.47 million on August 12, rebounding from an 11-week low of $185 million on August 11. However, activity subsequently saw a dip to $387.09 million on August 13 and further to $352.34 million on August 14, before the impressive surge to $1.41 billion on August 17.

This renewed market vibrancy coincided with an appreciation of the naira in the official FX market. The national currency closed at N1,350 per dollar on August 17, an improvement from N1,358.25/$ recorded in the previous session. This translates to an N8.25 gain against the US dollar. The weighted average exchange rate for the day was N1,349.54/$, while the simple average stood at N1,350.98/$. The closing rate on August 17 was also stronger than the N1,365/$ observed on August 11, the day NAFEM turnover hit its recent low.

An expert in emerging markets commented on the development, emphasizing the importance of sustaining this positive trend to foster a deeper FX market. "The increase in NAFEM turnover is encouraging, but the key issue is whether the higher level of activity can be sustained. A few large transactions can significantly distort daily turnover, so we need to see consistent volumes over several trading sessions before concluding that market liquidity has materially improved,” the expert cautioned.

These recent developments in the FX market occur against a backdrop of Nigeria’s external reserves maintaining elevated levels. CBN data reveals that reserves reached $52.02 billion on July 20, 2026, marking the highest point since January 2009. This reserve position has already surpassed the CBN's full-year projection of $51.04 billion for December.

In related financial news, Airtel Africa has increased its share buyback cap to $65 million, while FX and Open Market Operations (OMO) activities have propelled FMDQ’s seven-month turnover to N426.5 trillion. Conversely, weak market sentiment has led to a N544 billion reduction in the equity market's value.