Trading activity in Nigeria’s foreign exchange market weakened sharply during the week ended October 2, 2026, as total turnover across the spot and derivatives segments declined by 35.41 per cent to $1.70 billion.
The latest FMDQ FX Market Analysis Report showed that combined turnover fell by $930.18 million from the $2.63 billion recorded in the preceding week ended September 25.
Average daily turnover across the two market segments also declined to $424.24 million, compared with $525.43 million in the previous week.
Spot Market Drives Weekly Contraction
The decline was concentrated primarily in the spot foreign exchange market.
Spot transactions dropped by 36.93 per cent, or $955.70 million, to $1.63 billion, compared with $2.59 billion recorded a week earlier.
Despite the contraction, spot transactions continued to dominate overall activity, accounting for 96.19 per cent of total FX turnover during the period.
Average daily spot transactions consequently fell from $517.59 million to $408.06 million.
Spot transactions typically reflect immediate demand for foreign currency to meet obligations including imports, corporate payments and other international transactions.
The scale of the weekly contraction therefore provides an indication of how quickly liquidity and transaction volumes can change within the domestic FX market.
Liquidity Remains Important for Businesses
Foreign exchange liquidity remains an important issue for Nigerian businesses, particularly companies dependent on imported machinery, raw materials and other production inputs.
A deeper and more predictable market can make it easier for companies to plan transactions, price products and meet foreign currency obligations.
The latest decline followed a notable increase in trading activity during the preceding week, suggesting that turnover remains capable of significant week-to-week fluctuations.
According to the supplied report, movements in institutional liquidity can reflect factors including central bank interventions, export proceeds, seasonal demand and foreign portfolio flows.
For market participants, attention will remain on whether turnover rebounds in subsequent trading sessions and how the balance between FX demand and available supply develops.
The week’s figures nevertheless show that the spot market remains overwhelmingly dominant, making developments in that segment particularly important for overall foreign exchange liquidity.
