Activity in Nigeria’s foreign exchange market strengthened significantly in June 2026, with total turnover in the Nigerian Foreign Exchange Market (NFEM) rising by 44 per cent month-on-month to about $12.92 billion, reflecting improved dollar supply and stronger market participation.
Analysis of trading data showed that total foreign exchange turnover increased from approximately $8.99 billion recorded in May to $12.92 billion in June, representing a 43.6 per cent increase and underscoring renewed confidence in the market.
The surge in trading activity comes amid sustained efforts by the Central Bank of Nigeria (CBN) to deepen liquidity in the foreign exchange market through improved price discovery and greater participation by authorised dealers.
Daily trading volumes remained robust throughout the month, with several sessions recording turnover above $900 million. The highest daily turnover reached about $1.07 billion, while another trading day posted volumes exceeding $980 million, highlighting stronger and more consistent market activity.
Although May recorded a peak daily turnover of about $1.82 billion and another session close to $994 million, overall trading activity during the month was weaker and more volatile than in June.
Market data further showed that daily turnover remained above $500 million on most trading days in June, indicating improved liquidity conditions compared with the preceding month.
Analysts at FMDA noted that CBN interventions helped cushion the impact of heightened foreign exchange demand following the maturity of private Open Market Operations (OMO) bills.
They also pointed to continued growth in Nigeria’s external reserves, which rose by 3.3 per cent, or $1.66 billion, to $51.46 billion at the end of June from $49.8 billion at the beginning of the month.
Supported by increased offshore foreign exchange supply and a $170 million intervention sale by the CBN, the naira appreciated by 0.9 per cent during the month to close at N1,370.19 per dollar.
The local currency also recorded gains across most forward contracts. The one-month forward rate appreciated by 0.5 per cent to N1,393.36 per dollar, while the three-month and six-month contracts strengthened by 0.4 per cent and 0.2 per cent to N1,432.16 and N1,488.67 respectively. However, the one-year forward contract weakened marginally by 0.2 per cent to N1,601.20 per dollar.
Looking ahead, analysts at Cordros Research expect the naira to remain broadly stable, supported by resilient portfolio inflows, sustained market confidence and an improved current account surplus.
They, however, warned that any breakdown of the ceasefire between the United States and Iran could trigger portfolio outflows, prompting the CBN to undertake measured foreign exchange interventions to contain excessive volatility.
Similarly, analysts at Cowry Assets Management projected continued relative stability for the naira, citing improved market liquidity and healthy external reserves. They noted, however, that crude oil prices could remain volatile amid evolving geopolitical developments, OPEC+ production decisions and shifting global demand conditions.
Meanwhile, crude oil prices remained under pressure, extending losses for a fourth consecutive week as easing geopolitical tensions and improved global supply weighed on the market. West Texas Intermediate (WTI) crude fell 0.10 per cent to $68.62 per barrel, while Brent crude rose marginally by 0.17 per cent to $71.92 per barrel. Nigeria’s Bonny Light crude also declined by 0.26 per cent week-on-week to $71.63 per barrel.