NAFEM Turnover Rises to $1.41bn as Foreign Exchange Activity Rebounds

Turnover on the Nigerian Foreign Exchange Market (NAFEM) climbed sharply to $1.41bn on August 17, 2026, marking its highest level in about five weeks as activity in the foreign exchange market recovered from a significant decline earlier in the month.

Data from the Central Bank of Nigeria showed that the latest turnover was more than seven times the $185m recorded on August 11.

The August 17 figure was also the highest recorded since July 21, when NAFEM turnover stood at $1.53bn.

A total of 394 transactions were conducted during the session, including 178 interbank deals, reflecting a significant increase in trading activity.

The rebound followed considerable fluctuations in the market over the previous trading sessions.

Turnover increased to $607.47m on August 12 after dropping to an 11-week low of $185m the previous day.

However, activity declined again to $387.09m on August 13 and $352.34m on August 14 before recording a sharp rise to $1.41bn on August 17.

The increased trading activity also coincided with a stronger naira at the official foreign exchange market.

The naira closed at N1,350 per dollar on August 17, compared with N1,358.25/$ recorded at the previous session, representing an appreciation of N8.25 against the dollar.

The weighted average exchange rate stood at N1,349.54/$, while the simple average was N1,350.98/$.

The latest closing rate was also stronger than the N1,365/$ recorded on August 11, when market turnover reached its recent low.

An emerging markets expert described the rise in NAFEM turnover as encouraging but cautioned that the improvement would need to continue before it could be regarded as evidence of sustained market liquidity.

The expert noted that a few large transactions could significantly influence daily turnover, stressing that consistent trading volumes over several sessions would be necessary to determine whether liquidity in the foreign exchange market had genuinely improved.

The latest development comes amid Nigeria’s relatively strong external reserve position.

CBN data showed that the country’s external reserves reached $52.02bn on July 20, 2026, representing the highest level since January 2009.

The reserve level had also surpassed the CBN’s projection of $51.04bn for the end of 2026, indicating a stronger-than-expected position in the country’s external finances.

The rise in NAFEM activity, coupled with the appreciation of the naira and elevated foreign exchange reserves, could provide further support for stability in the official FX market if the trend is sustained in the coming weeks.

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