Nigeria Capital Market Inflows to Hit N10.53trn in May – FMDA Forecasts Liquidity Surge
Nigeria’s financial system is set for a significant liquidity boost, with the Financial Markets Dealers Association (FMDA) projecting total inflows to reach N10.53 trillion in May 2026. This marks a 16 percent increase from the N9.08 trillion recorded in April, pointing to stronger market activity and potential shifts in interest rate dynamics.
According to the association’s April report, Open Market Operations (OMO) maturities will be the major driver of inflows, contributing about 68 percent of the total. OMO maturities alone are expected to rise to N7.17 trillion in May, up from N5.88 trillion in April, reinforcing their dominant role in shaping system liquidity.
Other sources of inflows are also expected to improve. Treasury bills redemptions are projected to climb to N1.05 trillion from N722.72 billion, while allocations from the Federation Account Allocation Committee (FAAC) are estimated at N1.8 trillion, slightly below April’s N2.04 trillion. Meanwhile, Federal Government bond coupon payments are forecast at N346.14 billion, with no bond maturities scheduled for the month.
Despite the positive outlook for May, April recorded a dip in system liquidity. Average liquidity fell by 25.22 percent to N4.84 trillion, largely due to sustained liquidity mop-up operations by the Central Bank of Nigeria (CBN). On the foreign exchange front, however, the naira showed resilience, appreciating across both official and parallel markets, even as external reserves declined by 2.19 percent to $48.67 billion amid global economic pressures.
Market sentiment remained upbeat overall. The equities market posted strong gains, with the all-share index rising by 20.38 percent and market capitalisation reaching N155.99 trillion. Globally, oil prices stayed elevated, with Brent crude averaging $101.43 per barrel due to ongoing geopolitical tensions. Looking ahead, FMDA expects the CBN to step in with further market operations to manage rising liquidity and maintain economic stability.
source: The cable