NAFEM turnover surges to $1.41 billion, highest in five weeks
Turnover on the Nigerian Foreign Exchange Market (NAFEM) rose sharply to $1.41 billion on August 17, 2026, marking the highest level recorded in five weeks as activity in the FX market rebounded. The post NAFEM turnover surges to $1.41 billion, highest in five weeks appeared first on Nairametrics .
On August 17, 2026, the turnover on the Nigerian Foreign Exchange Market (NAFEM) surged to a record $1.41 billion, the highest level in five weeks, according to data from the Central Bank of Nigeria (CBN). The impressive figure represents a significant rebound in activity within the FX market, following a sharp decline earlier in the month. This level marks a notable increase from July 21, when turnover peaked at $1.53 billion.
The recent surge in turnover surpassed the $185 million recorded on August 11, when FX activity had plummeted to its lowest in 11 weeks. Throughout the day, the market witnessed 394 deals, including 178 interbank transactions, exhibiting a marked recovery in trading activity. The momentum behind this rebound continued into August 14, when turnover reached $352.34 million before experiencing the sharp increase on August 17.
The improvement in NAFEM turnover is accompanied by a strengthening of the naira at the official market. This data indicates a notable rebound in trading activity following a significant slowdown earlier in the month. Experts suggest that the sharp rebound in NAFEM turnover signals enhanced liquidity and greater participation in the official foreign exchange market.
However, analysts caution that the surge might be driven by large transactions from major corporate players, and should not be interpreted as a sustained shift in market conditions.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), attributes the sharp increase in turnover to large FX transactions by major corporate entities, such as importers of raw materials, machinery, and other essential inputs. He suggests that the surge in turnover may reflect the participation of a few significant market players rather than a broader increase in FX demand.
Dr Olu Olajengbesi from the University of Abuja adds that "The real test is whether this liquidity is sustained. If we see higher turnover across several weeks, together with stable or rising reserves and a relatively narrow exchange-rate range, then we can make a stronger case that the FX market is becoming deeper and more efficient."
The latest projections by the CBN indicate that external reserves are expected to rise to $51.04 billion in 2026, backed by stronger oil earnings, reforms in the foreign exchange market, and improved external inflows.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
