Nigeria's foreign exchange (FX) market saw liquidity climb to $10 billion in April 2026, up slightly from March, as the naira ended the month marginally stronger, Central Bank of Nigeria (CBN) data shows.

Total FX turnover reached $10 billion, compared to $9.92 billion the previous month--a 0.8 per cent month-on-month rise. Trading volume surged, with deals jumping 28.61 per cent to 7,889 from 6,134 in March.

The Nigerian Foreign Exchange Market (NFEM) dominated, handling 5,795 deals worth $8.14 billion. This marked a 28.18 per cent increase in volume from 4,521 deals in March, though turnover dipped 0.6 per cent from $8.19 billion.

Interbank trading also grew robustly: deals rose 29.82 per cent to 2,094, with turnover up 7.5 per cent to $1.86 billion from $1.73 billion.

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The naira gained N3.76 against the dollar in the NFEM, closing April 30 at N1,374.94 versus N1,378.70 at the month's start--a 0.27 per cent appreciation. In the parallel market, it strengthened by N10 to N1,400 per dollar, a 0.7 per cent gain from N1,410.

External reserves fell $810 million, or 1.65 per cent, to $48.37 billion by April 29 from $49.18 billion.

CBN governor, Olayemi Cardoso, described the reserve drop as typical in a liberalised FX system.

"Nigeria's reserve position remains strong, currently covering about 13 months of imports, well above international benchmarks," he said. He noted that market-driven fluctuations are normal as investors enter and exit freely.

Cardoso said the FX market has shifted from central bank dominance to one fuelled by liquidity and confidence, lessening emphasis on short-term reserve shifts.

He pointed to diaspora remittances averaging $600 million monthly, targeting $1 billion by year-end, via eased access, BVN integration, and bank partnerships.

Analysts view the data as signs of a deepening market, but stress the need to balance liquidity gains with reserve management for exchange rate stability.