Nigeria Fixed Income and Currency Markets Hit N193.2 Trillion Turnover in Q1 2026 Amid FX Surge
Nigeria’s fixed income and currency markets recorded a strong performance in the first quarter of 2026, with total turnover hitting N193.2 trillion on the FMDQ Exchange. The figure reflects sustained liquidity in the financial system and growing participation from both institutional and retail investors across key market segments.
Foreign exchange transactions once again dominated market activity, contributing N63.49 trillion, making FX the most active segment during the period. Close behind were Open Market Operations (OMO) bills, which recorded N59.45 trillion, underscoring the continued reliance on short-term monetary policy instruments to manage liquidity in the financial system.
Other major instruments also saw significant activity. Treasury bills accounted for N16.82 trillion, while Federal Government bonds contributed N15.62 trillion. Meanwhile, FX derivatives recorded N8.33 trillion, suggesting that more market participants are increasingly using hedging tools to manage currency volatility and protect against exchange rate risk.
In dollar terms, total market turnover stood at $139.60 billion, with FX transactions alone contributing $45.88 billion. The data also showed a strong average daily turnover of N3.27 trillion across 59 trading days, pointing to consistent market depth and sustained investor engagement throughout the quarter.
Other segments showed mixed but active participation. Repurchase agreements (repos) recorded N28.49 trillion, while unsecured placements stood at N567.10 billion. Eurobond activity remained relatively low at N366.64 billion, but Sukuk bonds contributed N51.11 billion, reflecting continued interest in Islamic finance instruments.
On the infrastructure side, FMDQ Clear reported stable activity in currency futures, with 6,255 contracts traded and cleared in both February and March 2026, valued at $67.79 billion. This stability in derivatives highlights an orderly market structure despite ongoing currency fluctuations.
Meanwhile, FMDQ Depository recorded a sharp rise in settlement activity, with sovereign trades jumping from N67.12 trillion in February to N187.63 trillion in March, a significant 179.55% increase. Non-sovereign trades also surged, rising from N4.56 trillion to N18.92 trillion, reflecting a strong pickup in corporate and institutional funding activities.
The quarter also saw the admission of several commercial papers from issuers such as AG Mortgage Bank Plc, VFD Microfinance Bank Limited, AgroEknor International Limited, and Skymark Partners Limited—signaling continued confidence in short-term debt instruments as a funding source for Nigerian businesses.
source: newtelegraph