Turnover in the NFEM (Nigerian Foreign Exchange Market) dropped to about $2.25 billion in the week ending September 25.
That was down from $2.74 billion the previous week and marked the second consecutive weekly decline in trading activity.
FX turnover simply measures how much foreign currency changed hands in the market during the period. It should not be confused with Nigeria’s foreign reserves.
The naira remained around the ₦1,300-per-dollar range during much of the week despite the lower trading volume.
It happened during a major interest-rate change
The drop came in the same week that the CBN (Central Bank of Nigeria) reduced its MPR (Monetary Policy Rate) from 26.5% to 23%.
The MPR is the CBN’s main benchmark interest rate and influences borrowing and investment conditions across the economy. (Central Bank of Nigeria)
The CBN operates the NFEM as Nigeria’s unified official foreign-exchange market, where the naira’s exchange rate is determined through transactions between buyers and sellers. (Central Bank of Nigeria)
What this means
Lower weekly FX turnover means less foreign currency was traded, but it does not automatically mean Nigeria is facing a dollar shortage.
The more important question is whether lower trading activity begins to put pressure on the naira.
For businesses that import goods and Nigerians paying for foreign services, a stable exchange rate matters because sharp movements in the naira can quickly affect costs.
For now, the notable combination is lower FX trading activity alongside a relatively stable naira.
