Nigeria’s foreign exchange utilisation surged to a 15‑year high of $18.34 billion in the second quarter of 2026, according to data released by the central bank. The spike was driven primarily by a sharp increase in demand for financial services.
Foreign exchange utilisation measures the amount of foreign currency that businesses, households and the government need to settle imports, service external debt and conduct other cross‑border transactions. A higher utilisation figure signals greater pressure on the country’s foreign exchange reserves.
The latest quarter’s record level was attributed mainly to heightened activity in the financial services sector, including banking, insurance and related fintech operations, which required larger foreign currency outlays.
Nigeria, Africa’s most populous nation, has historically grappled with foreign exchange shortages as it balances oil‑linked export earnings against a growing import bill. The services sector has become an increasingly important driver of the economy, contributing to the recent surge in FX demand.
The $18.34 billion utilisation figure underscores the expanding need for foreign currency in the Nigerian economy and may shape future policy considerations aimed at stabilising the foreign exchange market.
<small>Source: Punch Nigeria — read the original story there.</small>