Nigeria’s Forex Market Liquidity Tumbles 80% in One Week

Nigeria’s foreign exchange (FX) market suffered a sharp contraction in liquidity last week, with total turnover plunging by more than 80%, according to data from FMDQ Securities Exchange.

Total turnover in the FX Spot and Derivatives markets fell to $877.25 million from the $4,435.54 million recorded in the previous week ended March 13, 2026.

The slump was almost entirely driven by a collapse in activity in the spot market. FX spot transactions dropped by 80.25%, sliding from $4,433.21 million to just $875.65 million.

Derivatives activity also weakened, though on a much smaller base. FX derivatives transactions declined by 31.33% (or $0.73 million) over the same period.

The steep week-on-week fall in both spot and derivatives turnover underscores the fragility and volatility of FX liquidity conditions, as policymakers and market participants continue to navigate persistent pressure on Nigeria’s foreign exchange market.