Market News

Nigeria’s foreign exchange market recorded a major boost in 2025, with average monthly turnover rising to $8.6 billion, according to the Central Bank of Nigeria (CBN). The development signals renewed investor confidence and relief for the naira, which has faced years of pressure from foreign exchange shortages and speculative activities.

The Deputy Governor of the CBN in charge of Economic Policy, Mohammed Sani Abdullahi, disclosed this on Wednesday at an investors’ forum held on the sidelines of the IMF and World Bank Annual Meetings in Washington D.C., where he outlined impressive growth in FX turnover reforms designed to improve liquidity, boost transparency, and strengthen Nigeria’s external buffers.

“Over the last two years, we have placed strong emphasis on improving foreign exchange inflows into the economy, and as a result, we’ve seen a significant jump,” Abdullahi said.

He explained that the official FX window has become more liquid following the introduction of an order-based quotation system, improved diaspora remittance flows, and the clearance of FX backlogs and outstanding obligations that had constrained market confidence.

“There’s been a significant increase in the average monthly turnover to $8.6 billion in 2025, compared to $5.5 billion in the previous year,” he added.

“Today, the CBN is a net buyer in the market, supplying less than one percent of total turnover.”

The deputy governor noted that the CBN has been rebuilding external reserves to strengthen the country’s resilience against global economic shocks.

He described the evolving FX market as “an active and ethical marketplace,” where transactions are conducted with greater transparency.

In a related development, Abdullahi announced ongoing collaboration between the CBN, the Securities and Exchange Commission (SEC), and the National Pension Commission (PenCom) to reform the secondary market. The objective, he said, is to create more investable instruments, deepen participation, and promote ethical standards among market players.

He emphasized that Nigeria now has “deeper, more functional, and transparent financial markets” capable of supporting sustainable economic growth.

Financial analysts say the improved FX turnover, coupled with reduced CBN intervention, could further stabilize the naira, attract foreign portfolio inflows, and strengthen investor confidence — setting the stage for stronger macroeconomic outlook for 2026.