Exchange records strong liquidity-driven growth in early 2026, with CBN’s open market operations emerging as the dominant force in financial market activity…..
The FMDQ Exchange recorded a total market turnover of N249.18 trillion between January and April 2026, reflecting sustained activity across Nigeria’s fixed income, foreign exchange, and money markets amid tight liquidity conditions.
The figure, equivalent to about $180.85 billion, was disclosed by Group Chief Operating Officer, Tumi Sekoni, in the April edition of the Exchange’s newsletter.
It shows an increase of N55.98 trillion compared to the N193.20 trillion recorded in the first quarter of 2026, indicating stronger trading momentum in April.
Across the 77 trading days within the period, average daily turnover stood at approximately N3.24 trillion ($2.35 billion), slightly below the N3.27 trillion daily average recorded in Q1, but still reflective of robust market participation.
A breakdown of activity shows a notable reshuffle in market dominance, with Open Market Operations (OMO) bills overtaking foreign exchange as the leading driver of turnover.
OMO bills accounted for N80.42 trillion, representing 32.3% of total market activity, up from N59.45 trillion in Q1. The increase underscores the Central Bank of Nigeria’s continued reliance on liquidity management tools to regulate system cash levels and stabilise short-term interest rates.
Foreign exchange transactions followed closely at N78.19 trillion, representing 31.4% of total turnover. While FX volumes rose in absolute terms, its share of total activity declined slightly as OMO bill trading expanded more rapidly.
Together, OMO bills and FX instruments made up about 63.7% of total market turnover, reinforcing their continued dominance in Nigeria’s financial markets.
Repurchase agreements and open repos ranked third, contributing N36.70 trillion, or 14.7% of total activity, a share unchanged from the previous quarter. This suggests sustained demand for short-term funding among financial institutions amid tight liquidity conditions.
Treasury bills and Federal Government of Nigeria (FGN) bonds also recorded increased activity, jointly contributing over N42 trillion, up significantly from Q1 levels.
FX derivatives added N9.61 trillion, while unsecured placements and takings accounted for N1 trillion. Eurobonds and Sukuk instruments contributed a combined N522.21 billion, reflecting relatively modest participation in longer-term securities.
Market analysts noted that the surge in OMO bill transactions between Q1 and April points to an increasingly aggressive liquidity-tightening stance by the Central Bank of Nigeria, as it continues to rely on open market operations to manage excess liquidity and influence short-term rates.
The steady share of repo transactions over the period also indicates persistent funding pressure within the banking system, typically associated with tighter interbank liquidity conditions.
An implied exchange rate derived from the turnover data suggests a level of about N1,378 per dollar over the period, offering a broad benchmark of market pricing dynamics within the FMDQ system.
Several instruments, including CBN special bills, promissory notes, commercial papers, and some derivatives, recorded no activity during the period, highlighting the concentration of trading in core liquid instruments.
The January–April performance builds on a strong 2025 full-year turnover of N676.71 trillion, placing the market on a trajectory that could potentially exceed last year’s total if current momentum is sustained.
Overall, the data points to a financial market increasingly shaped by liquidity management operations and short-term instruments, with OMO bills now firmly established as a central driver of trading activity alongside foreign exchange.
