Nigeria’s foreign exchange utilisation rose sharply to $16.2bn in the first quarter of 2026, representing a 74 per cent increase from the same period a year earlier, as improved dollar supply and greater currency stability boosted activity across the economy.
The latest figures, contained in the Central Bank of Nigeria’s Quarterly Statistical Bulletin, show that the increase was largely driven by invisible transactions, which more than doubled year-on-year to $11.4bn from $4.5bn.
Invisible transactions consequently accounted for about 70 per cent of Nigeria’s total foreign exchange utilisation during the quarter.
The financial services industry was responsible for the largest portion of demand within the invisible transactions segment. Its FX utilisation climbed 117 per cent year-on-year to $9bn, representing 79 per cent of total invisible transactions.
Business services recorded the second-highest utilisation within the category, rising significantly to $1.2bn from $223.6m in Q1 2025.
Meanwhile, spending on merchandise imports remained relatively unchanged. FX utilisation for visible imports increased marginally by 0.2 per cent year-on-year to $4.9bn.
Industrial companies, however, recorded lower demand for foreign exchange during the period. Their utilisation fell 20 per cent year-on-year to $1.8bn, despite the sector’s substantial dependence on imported raw materials, machinery and equipment.
In contrast, FX utilisation for manufactured products rose to $1.1bn from $477.9m a year earlier, while demand for transport products increased to $295m from $142.8m.
The stronger utilisation of these categories was partly attributed to higher import costs linked to global supply-chain disruptions and increased prices of key inputs and raw materials following the US-Iran conflict.
The data also point to improving liquidity conditions in Nigeria’s FX market, with stronger gross external reserves providing greater support for dollar availability.
The relative stability of the naira has also helped strengthen confidence in the market, making it easier for businesses and other end-users to anticipate currency movements and increasing their willingness to access foreign exchange.
According to Lagos-based emerging markets analyst, Ike Ibeabuchi, “The rise in FX utilisation is a positive indication that improved liquidity is encouraging businesses and other market participants to return to the formal foreign exchange market.”
However, he said the sustainability of this trend will depend on the CBN’s ability to maintain adequate dollar supply and ensure that exchange-rate stability is supported by stronger underlying economic activity.
