Nigeria’s fixed-income market witnessed a remarkable surge in activity in July 2026, with investors trading securities worth ₦29.36 trillion, representing a 36 percent increase from the ₦21.59 trillion recorded in June. The sharp rise highlights growing investor confidence in government-backed debt instruments, particularly Open Market Operation (OMO) Bills, as market participants continued to seek attractive yields in Nigeria’s high-interest-rate environment.
According to data from the Fixed Income Dashboard, OMO Bills remained the most actively traded instrument, accounting for ₦16.44 trillion in transactions during the month, up significantly from ₦11.99 trillion in June. Trading activity also intensified, with the number of OMO transactions increasing to 2,809 from 2,201, despite a slight decline in the number of active participants. Treasury Bills also enjoyed renewed investor demand, with transaction value climbing to ₦6.98 trillion from ₦4.18 trillion, while Federal Government (FGN) Bonds posted moderate growth, recording ₦5.87 trillion in trades compared to ₦5.33 trillion in the previous month.
The overall market reflected stronger participation, recording 9,875 trades in July, a 16.6 percent increase from June’s 8,469 trades, while the number of active participants remained stable at 31. Sukuk securities, however, continued to experience limited activity, with only 23 trades recorded for the second consecutive month. Transaction value for Sukuk slipped slightly to ₦69.11 million, reinforcing the instrument’s relatively small contribution to the broader fixed-income market.
Investor appetite remained strong as yields across major instruments stayed attractive. The one-year OMO Bill yield edged higher to 21.05 percent, maintaining its position as the market’s highest-yielding fixed-income instrument. Treasury Bills also recorded modest yield increases, while yields across the FGN bond curve remained largely stable within the 15 to 16 percent range, reflecting sustained confidence in government securities despite evolving market conditions. Analysts noted that elevated interest rates continue to encourage investors to channel funds into low-risk debt instruments.
Looking ahead, market sentiment remains positive as the Treasury Bills secondary market is expected to sustain its bullish momentum, supported by strong system liquidity and healthy investor demand. Recent auctions by both the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) attracted overwhelming subscriptions running into trillions of naira, underscoring investors’ preference for fixed-income assets. With approximately ₦2.45 trillion expected to flow into the financial system from OMO maturities, analysts believe liquidity conditions will remain favourable, potentially driving continued activity across Nigeria’s fixed-income market in the coming weeks.
source: LEADERSHIP
