Nigeria’s formal foreign exchange market recorded a sharp decline in trading activity in the week ended October 2, 2026, as total turnover across the FX Spot and Derivatives markets fell by 35.41 per cent to $1.70 billion, according to data from FMDQ.
The latest FMDQ figures showed that combined turnover stood at $1.69697 billion, down by $930.18 million from the $2.62715 billion recorded in the preceding week ended September 25.
The decline was driven overwhelmingly by a slump in FX Spot transactions, which more than offset a strong increase in trading in the derivatives segment.
Spot Market Bears the Brunt
The FX Spot market recorded $1.63224 billion in turnover during the week, accounting for 96.19 per cent of total FX market activity.
However, the figure represented a 36.93 per cent week-on-week decline, or $955.70 million, from the $2.58794 billion recorded in the previous week.
Daily average turnover in the spot market also dropped to $408.06 million, compared with $517.59 million recorded a week earlier.
As a result, the spot market’s share of total FX transactions fell from 98.51 per cent to 96.19 per cent during the period under review.
Derivatives Trading Surges
While spot market activity weakened considerably, the FX Derivatives segment recorded a notable increase in turnover.
According to FMDQ, turnover in FX Derivatives, comprising FX Forward transactions, rose to $64.73 million from $39.21 million in the preceding week.
This represented a 65.09 per cent week-on-week increase, translating to an additional $25.52 million in transactions.
Daily average turnover in the derivatives market also more than doubled, rising from $7.84 million to $16.18 million.
Despite the sharp increase, derivatives remained a relatively small component of overall FX market activity, accounting for 3.81 per cent of total turnover, compared with 1.49 per cent in the previous week.
Overall Market Activity Falls
FMDQ put the combined turnover of the FX Spot and Derivatives markets at $1.69697 billion for the week, with a daily average turnover of $424.24 million.
This compared with total turnover of $2.62715 billion and a daily average of $525.43 million in the preceding week.
The figures indicate that the surge in derivatives transactions was not enough to cushion the impact of the steep contraction in spot-market trading.
The latest data provide a snapshot of activity in Nigeria’s formal foreign exchange market for the week ended October 2, 2026, with FMDQ’s weekly reports serving as a key reference point for developments in trading activity and liquidity in the official FX market.
