Turnover on Nigeria’s Nigerian Autonomous Foreign Exchange Market (NAFEM) rose to $1.41 billion on Monday, August 17, 2026, reaching its highest level in five weeks as activity in the foreign exchange market rebounded.
The latest figure represents a significant increase in trading activity compared with recent weeks and signals renewed participation in the official foreign exchange market.
The rebound comes amid ongoing efforts by the Central Bank of Nigeria (CBN) to improve liquidity, strengthen transparency and deepen activity in the foreign exchange market.
Nigeria has undertaken several reforms in the FX market since 2023, including the unification of exchange-rate windows and measures aimed at allowing market forces to play a greater role in determining the value of the naira. The reforms have also been accompanied by efforts to improve liquidity and attract more transactions to the official market.
The CBN introduced a new Foreign Exchange Manual in June 2026, replacing the previous 2018 framework. The revised rules were designed to consolidate Nigeria’s foreign-exchange regulations while strengthening oversight and improving the efficiency of FX transactions.
The increased turnover is significant because higher transaction volumes can indicate greater liquidity and participation by banks, businesses, investors and other authorised market participants.
However, turnover alone does not necessarily indicate a sustained improvement in foreign-exchange liquidity or the value of the naira. Exchange-rate movements are also influenced by the balance between demand and supply of foreign currency, oil revenues, portfolio flows and other external transactions.
The latest development therefore provides another indication of increased activity in Nigeria’s formal FX market, even as authorities continue efforts to deepen the market and improve confidence in the naira.
Market participants will be watching subsequent trading sessions to determine whether the surge represents the beginning of a sustained recovery in FX activity or a temporary increase in transaction volumes.
