The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has revealed that Nigeria’s foreign exchange market now records an average daily turnover of about $500 million — even when the apex bank does not participate. The disclosure came during the 303rd Monetary Policy Committee meeting in Abuja.
According to Cardoso, the market’s transformation stems from a shift to a true “willing buyer–willing seller” framework supported by the electronic foreign exchange matching system (EF-EMS), which allows full transparency over who is buying and selling at any moment. This has replaced what he described as an old system that depended almost entirely on CBN intervention.
The governor noted that the reformed FX market now operates openly and transparently, with far narrower spreads — a significant change from past periods when the difference between official and parallel market rates could reach 60 percent. Current differentials, he said, are close to 2 percent.
Market experts say the $500 million-a-day turnover signals renewed liquidity, improved investor confidence, and a more stable foundation for currency supply. This could help smooth forex for businesses, reduce exchange-rate volatility, and support trade and foreign investment flows.
This wave of activity also reflects a broader improvement: in 2025 alone, monthly FX turnover is estimated at $8.6 billion, underscoring the dramatic scale-up in market operations.
For many Nigerians — importers, exporters, investors, and ordinary citizens — the changes could mean easier access to foreign exchange, more transparent pricing, and lower risk of sharp currency swings. The new system may also help restore faith in the financial market’s ability to self-regulate.
Still, analysts caution that sustaining the momentum depends on consistent policy enforcement, robust oversight, and continued reform. They emphasise that full confidence will only come if the market remains truly open over the long term.
Overall, Cardoso’s update suggests Nigeria may be entering a new phase in its forex history — one where market forces, not central bank interventions, play the lead role in shaping currency supply and demand.