FMDQ turnover hits N426.51trn in seven months as FX, OMO drivl...

The FMDQ Exchange recorded N426.51 trillion in market turnover between January and July 2026, representing about 63 per cent of the N676.71 trillion recorded for the whole of 2025, as foreign exchange transactions and Open Market Operations (OMO) Bills continued to dominate activity across Nigeria’s financial markets.

The seven-month turnover, equivalent to $310.18 billion, is already N177.33 trillion higher than the N249.18 trillion recorded by the Exchange between January and April 2026, according to the FMDQ Exchange Newsletter Edition 141 for July 2026 obtained by Nairametrics.

The latest figures underscore the strong appetite for foreign exchange and short-term fixed-income instruments as banks, institutional investors and other market participants manage liquidity and seek attractive yields amid elevated interest rates.

FX transactions remained the largest contributor to turnover, generating N143.34 trillion ($104.27 billion) during the period, representing about 33.6 per cent of total market activity.

FX derivatives added another N17.72 trillion ($12.91 billion), taking combined FX-related turnover to N161.07 trillion, or about 37.8 per cent of total activity on the Exchange.

OMO Bills ranked as the second-largest individual contributor, recording N126.35 trillion ($91.89 billion) in turnover, equivalent to approximately 29.6 per cent of the market.

The strong turnover in OMO securities reflects continued investor demand for short-term instruments as the Central Bank of Nigeria uses open market operations to manage liquidity while investors seek relatively high yields.

Government debt instruments collectively accounted for nearly half of total FMDQ turnover during the seven months.

OMO Bills, Treasury Bills, FGN Bonds and Sukuk generated approximately N202.55 trillion, representing about 47.5 per cent of total market activity.

Treasury Bills contributed N37.02 trillion, while FGN Bonds recorded N38.84 trillion.

Repurchase Agreements and Open Repos also remained significant, generating N59.31 trillion in turnover, while unsecured placements and takings contributed a further N2.66 trillion.

Together, these money-market liquidity instruments generated approximately N61.98 trillion, reflecting the importance of short-term funding and liquidity management to financial institutions.

Eurobonds recorded N930.47 billion, while Sukuk Bonds generated N330.60 billion during the period.

Activity on the Exchange remained heavily concentrated among major financial institutions, with Stanbic IBTC Bank emerging as the leading dealing-member bank between January and July.

First Bank of Nigeria ranked second, followed by Coronation Merchant Bank.

The top 10 dealing-member banks accounted for 75.27 per cent of total FMDQ turnover, equivalent to about N321.02 trillion.

The top three alone accounted for 52.27 per cent of the activity recorded by the top 10 banks, translating to approximately N169.40 trillion in transactions.

The concentration highlights the central role of major banks in supplying liquidity and facilitating transactions across Nigeria’s foreign exchange, fixed-income and money markets.

FMDQ Group Chief Operating Officer, Tumi Sekoni, said the Group remained focused on advancing Nigeria’s financial markets through market activity, product development and knowledge-sharing initiatives.

The Exchange generated the N426.51 trillion turnover across 143 business days, translating to average daily activity of about N2.98 trillion ($2.17 billion).

That daily run rate is higher than the approximately N2.74 trillion average recorded across 247 business days in 2025, when the Exchange posted N676.71 trillion in full-year turnover.

The acceleration in activity has been particularly pronounced since April. FMDQ recorded N249.18 trillion in turnover in the first four months of 2026 before generating another N177.33 trillion between May and July.

At the current pace, the Exchange is on course to surpass its 2025 turnover significantly if market activity remains strong through the rest of the year.

The latest performance also highlights the changing structure of Nigeria’s financial markets, where FX transactions and policy-driven fixed-income instruments are accounting for a substantial share of trading activity.

For investors, the heavy concentration in OMO Bills, Treasury Bills and other government securities suggests that fixed-income assets remain highly attractive amid elevated yields, while the strength of FX turnover points to continued demand for currency-market liquidity.

The FMDQ performance therefore points to a financial market operating at a significantly higher level of activity in 2026, with N426.51 trillion already traded in seven months and FX and OMO instruments accounting for the largest share of the market.