Nigeria's FX turnover jumps 40% to $3.39bn as derivatives trading surges
Nigeria's foreign exchange market recorded a strong rebound in the week ended September 11, 2026, with total turnover rising to $3.39 billion, up 40.45% from $2.41 billion the previous week, according to FMDQ data. Spot transactions grew to $2.96 billion (87.38% of total), while derivatives—mainly FX forwards—surged to $428 million, a 505.8% week-on-week jump that pushed derivatives' share to 12.6% from 2.9%. Average daily turnover hit $678.3 million, driven by both segments. The spike in derivatives activity suggests businesses are locking in future exchange rates amid rising global oil prices above $100 per barrel, fueled by the escalating US‑Iran conflict, to hedge against inflation and forex volatility. Importers, exporters, investors and banks use forwards to hedge future payments, while spot trades meet immediate FX needs. This shift indicates growing appetite for risk‑management tools as corporates anticipate pressure on profit margins from higher energy costs. Market liquidity improved, with average daily spot turnover at $592.7 million and derivatives at $85.6 million. The data points to a more balanced FX market where hedging instruments are gaining traction alongside traditional spot trading for managing currency exposure.