In a significant development for Nigeria’s economy, the foreign exchange market has recorded a major boost with average monthly turnover rising to $8.6 billion in 2025, providing much-needed relief for the naira after years of persistent pressure.
The Central Bank of Nigeria (CBN) disclosed this encouraging figure, pointing to renewed investor confidence and improved liquidity that has begun to stabilize the local currency. The announcement was made by the Deputy Governor of the CBN in charge of Economic Policy, Mohammed Sani Abdullahi, during an investors’ forum held alongside the IMF and World Bank Annual Meetings in Washington D.C.
Abdullahi outlined the impressive growth in FX turnover, crediting 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 told the international audience.
The deputy governor explained that the official FX window has become substantially more liquid following several key interventions. These include the introduction of an order-based quotation system, improved diaspora remittance flows, and the crucial clearance of FX backlogs and outstanding obligations that had previously 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 revealed, providing clear evidence of the market’s expansion.
Perhaps the most telling indicator of improved market health is the reduced role of the CBN as a supplier. “Today, the CBN is a net buyer in the market, supplying less than one percent of total turnover,” Abdullahi stated, signaling that the market is increasingly driven by organic inflows rather than central bank intervention.
He described the evolving FX market as “an active and ethical marketplace,” where transactions are conducted with greater transparency, and 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.
Abdullahi emphasized that Nigeria now has “deeper, more functional, and transparent financial markets” capable of supporting sustainable economic growth. He also noted that the CBN has been rebuilding external reserves to strengthen the country’s resilience against global economic shocks.
Financial analysts view the improved FX turnover, coupled with reduced CBN intervention, as a positive signal that could further stabilize the naira, attract foreign portfolio inflows, and strengthen investor confidence—potentially setting the stage for a stronger macroeconomic outlook for 2026. For a currency that has faced severe pressure from foreign exchange shortages and speculative activities, the $8.6 billion monthly turnover figure represents a meaningful step toward sustained stability.
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