Nigeria’s foreign exchange (forex) market recorded a significant turnover of ₦23.9 trillion, driven by heightened investor activity. The surge in transactions is attributed to increased participation by domestic and foreign investors seeking opportunities within the country’s evolving forex landscape.
According to industry data, the sharp increase in market turnover reflects efforts by market players to adapt to regulatory adjustments and global economic trends. Analysts believe that recent policy changes by the Central Bank of Nigeria (CBN) aimed at liberalizing the forex market have encouraged more activity, despite ongoing liquidity challenges.
The ₦23.9 trillion turnover highlights the robust demand for forex across various sectors, particularly in trade, manufacturing, and financial services. Market participants have been capitalizing on opportunities arising from fluctuations in exchange rates, further driving up transaction volumes.
Commenting on the development, financial experts noted that while the higher turnover signifies vibrancy in the market, it also underscores the pressing need for measures to stabilize the naira and address supply-side constraints. Persistent challenges, including limited access to forex for small businesses and a widening gap between official and parallel market rates, continue to pose risks to market stability.
The CBN has reiterated its commitment to reforms aimed at improving market efficiency and transparency. It recently introduced initiatives to attract foreign direct investment and encourage exporters to repatriate earnings through official channels. These measures, the apex bank stated, are designed to boost forex inflows and reduce pressure on the naira.
Investors have shown mixed reactions to the turnover figures. While some view the activity as a sign of growing confidence in Nigeria’s forex market, others remain cautious, citing concerns about policy consistency and macroeconomic volatility.
As forex turnover continues to rise, stakeholders are calling for sustained reforms, improved liquidity, and enhanced regulatory oversight to ensure that the market operates smoothly and contributes to broader economic stability. The ₦23.9 trillion milestone is a testament to the market’s potential, but addressing underlying challenges will be key to sustaining this momentum.
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