NAFEM turnover rises to $1.41bn as FX activity rebounds

Turnover on the Nigerian Foreign Exchange Market (NAFEM) surged to $1.41 billion on August 17, 2026, marking a five-week high and signaling a significant recovery in trading activity. This figure represents more than a sevenfold increase from the $185 million recorded just a week prior, on August 11.

The market experienced considerable fluctuations in foreign exchange activity leading up to this surge. After hitting an 11-week low of $185 million on August 11, turnover saw a modest rise to $607.47 million on August 12. Activity then declined to $387.09 million on August 13 and $352.34 million on August 14, before the substantial jump to $1.41 billion on August 17. The market recorded 394 deals during this session, including 178 interbank transactions.

Accompanying the increased market activity was a strengthening of the naira against the dollar in the official FX market. The currency closed at N1,350 per dollar on August 17, an appreciation of N8.25 from the previous session's N1,358.25/$ rate. This closing rate was also stronger than the N1,365/$ recorded on August 11, when NAFEM turnover reached its recent low.

An emerging markets expert noted the encouraging increase in NAFEM turnover but cautioned about its sustainability. "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 warned, emphasizing the need for sustained activity to deepen the FX market.

This positive development in the FX market occurs while Nigeria's external reserves remain robust, reaching $52.02 billion as of July 20, 2026. This level exceeds the Central Bank of Nigeria's December projection of $51.04 billion for the full year, indicating a strong reserve position.

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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.