Nigeria's FX demand soars to 15‑year high as services and financial flows dominate

FX utilisation reaches 15‑year peak Nigeria’s foreign‑exchange utilisation climbed to $18.34 bn in the second quarter of 2026, the largest quarterly figure since the third quarter of 2011, according to the Financial Markets Dealers Association (FMDA). The rise reflects a growing reliance on services and financial payments rather than merchandise imports.

Invisible transactions dominate Invisible‑related transactions – payments for services and other non‑merchandise items – accounted for $13.24 bn, representing 72.19 % of total utilisation. This figure is a 93.16 % increase on the $6.85 bn recorded in the same period a year earlier, underscoring the expanding role of cross‑border financial flows.

Financial services fuel the surge Financial services made up 52.58 % of total FX utilisation, with demand for such services rising 72.81 % from $5.58 bn a year earlier. Business‑services demand jumped 191.39 % to $1.66 bn from $570.41 m, while other services grew 118.66 % to $1.12 bn. The FMDA report did not break down the $9.64 bn of financial‑services transactions into investment, obligations or other categories.

Import‑related demand falls slightly Merchandise‑import demand fell 1.49 % year‑on‑year to $5.10 bn, indicating that imports are now a smaller share of overall FX utilisation. The decline contrasts with the sharp rise in services and financial transactions.

Quarterly growth figures Total utilisation increased 12.84 % from $16.25 bn in Q1 2026 and 52.42 % from $12.03 bn in the corresponding quarter of 2025, signalling a robust expansion in cross‑border payments.

FMDA and CBN context The FMDA’s update draws on Central Bank of Nigeria data and notes $542.56 m in unallocated invisible demand, suggesting that some figures did not fully reconcile. Autonomous inflows grew during the quarter, while the bank’s dollar sales fell sharply, pointing to a shift in the source of foreign‑exchange inflows.

Implications The data highlight a shift in Nigeria’s FX demand structure, with services and financial transactions now driving the bulk of utilisation. Policymakers will need to monitor the balance between investment flows and potential capital flight as the economy continues to evolve.