Nigeria’s naira traded within a narrow range against the US dollar as turnover in the country’s foreign exchange spot and derivatives markets fell by 22.23 per cent to $2.62 billion in the week ended 16 October 2026, according to data from FMDQ Securities Exchange.
Total turnover declined to $2.62 billion from $3.37 billion in the preceding week, a reduction of $749.15 million. The figures point to lower trading activity across both market segments, even as the naira’s official exchange rate remained relatively stable.
Data published by the Central Bank of Nigeria showed that the naira’s official rate was around ₦1,333 per dollar during the period. The currency closed at approximately ₦1,333.50 per dollar on 19 October, compared with ₦1,334.20 on 16 October, according to Nairametrics’ analysis of CBN data published on 20 October.
Spot transactions, which involve currency exchanges for immediate or near-immediate delivery, accounted for most of the decline in market activity. Their turnover fell by 19.83 per cent to $2.60 billion from $3.24 billion a week earlier, representing a reduction of $642.09 million.
Activity in the foreign exchange derivatives market fell more sharply. Turnover in forward transactions dropped by 81.14 per cent to $24.89 million from $131.95 million in the previous week. Forward contracts allow businesses and other market participants to agree on an exchange rate for a currency transaction at a future date, helping them manage uncertainty over their foreign-currency costs.
Despite the fall in turnover, the data do not establish that Nigeria is experiencing a fresh dollar shortage. Trading volumes can change because of shifts in demand, the timing of transactions, market positioning and the availability of counterparties. Lower turnover alone does not show whether fewer dollars are available or whether buyers are struggling to obtain them.
For businesses that depend on imported raw materials, machinery, medicines and other goods, the distinction matters. A relatively stable exchange rate can make budgeting easier, but companies also need reliable access to foreign currency to pay overseas suppliers. If access becomes more difficult, businesses may face delays in settling invoices even when the published exchange rate changes little.
Forward-market activity is another indicator worth watching. The sharp weekly decline in forward turnover suggests that fewer such transactions were recorded during the reporting period, but it does not mean that existing forward contracts fell by the same amount or that businesses have lost access to hedging altogether.
The next FMDQ weekly report should help establish whether the reduction in turnover was temporary or part of a continuing pattern. Businesses and investors will also need to monitor the naira’s exchange rate, official market activity and foreign-currency availability before drawing conclusions about the direction of the market.
