In an update published by Punch, official statistical bulletins from the Central Bank of Nigeria reveal that foreign exchange utilization expanded by 74 percent year-on-year to reach $16.2 billion in the first quarter of 2026. The surge reflects improved dollar availability and macroeconomic stabilization following sustained exchange rate reforms and reserve accumulation.
The data indicates that the sharp growth was predominantly driven by invisible transactions, including business service payments and international travel, which expanded past $11.4 billion. Conversely, demand for visible merchandise imports recorded marginal changes, signaling a steady rebalancing between industrial goods procurement and capital service flows.
Independent financial reporting validates these systemic movements. Reports from ThisDay note that expanded reserves—approaching $53.3 billion—have significantly bolstered market confidence and smoothed interbank liquidity access. Simultaneously, market analysis cited by Vanguard features emerging markets analyst Ike Ibeabuchi stating, “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.”
Echotitbits take:
A 74 percent jump in formal FX utilization confirms that capital flow bottlenecks are easing, allowing pent-up corporate and service demand to clear through official channels rather than parallel markets. However, policy managers must ensure that increased dollar outflows do not erode reserve buffers. Financial authorities will likely maintain strict monitoring to prioritize productive industrial utilization over speculative demands.
Source: Independent – https://independent.ng/fx-demand-surges-74-to-16-2bn-as-financial-services-drive-nigerias-dollar-appetite/, August 31, 2026
Photo credit: The Guardian
