FX, OMO bills drive FMDQ turnover to N426.5tn in 7 months

THE FMDQ Exchange recorded N426.51 trillion in market transactions in the first seven months of 2026, driven largely by foreign exchange deals and trading in Open Market Operations Bills.

The figure was disclosed in the FMDQ Newsletter Edition 141 for July 2026. The January-to-July turnover represents a substantial portion of the N676.71 trillion recorded for the whole of 2025, with seven-month activity already reaching about 63 per cent of last year’s total.

FMDQ recorded N249.18 trillion between January and April, meaning transactions increased by N177.33 trillion over the following three months.

The increase reflects stronger activity across the foreign exchange, fixed-income and money markets amid elevated interest rates and continued efforts by financial institutions to manage liquidity.

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FX transactions lead

Foreign exchange remained the largest contributor to the Exchange’s turnover during the period. FX transactions amounted to N143.34 trillion, accounting for 33.6 per cent of total activity.

Another N17.72 trillion came from FX derivatives, bringing combined FX-related transactions to N161.07 trillion, representing 37.8 per cent of total turnover.

OMO blls followed with N126.35 trillion in transactions, accounting for 29.6 per cent of the market.

The high level of OMO activity reflects investor demand for short-term instruments offering attractive yields, while banks and other financial institutions use the market to manage their liquidity positions.

Government securities remain strong

Government-backed instruments accounted for nearly half of the turnover recorded on the Exchange. OMO bills, treasury bills, FGN bonds and Sukuk generated a combined N202.55 trillion, representing approximately 47.5 per cent of total activity.

Treasury bills contributed N37.02 trillion, while FGN Bonds accounted for N38.84 trillion. Trading in Repurchase Agreements and Open Repos stood at N59.31 trillion, with Unsecured Placements and Takings contributing N2.66 trillion.

Together, the two money-market instruments generated N61.98 trillion. Eurobonds recorded N930.47 billion in turnover, while Sukuk Bonds accounted for N330.60 billion.

Top banks drive market

Activity was concentrated among the major financial institutions that serve as FMDQ dealing members.

Stanbic IBTC Bank recorded the highest turnover among dealing-member banks during the period, followed by First Bank of Nigeria and Coronation Merchant Bank.

The top 10 banks accounted for 75.27 per cent of total FMDQ turnover, amounting to approximately N321.02 trillion.

The three leading institutions alone accounted for 52.27 per cent of the activity generated by the top 10 banks, equivalent to about N169.40 trillion.

The figures underline the importance of major banks in supplying liquidity to the country’s FX, money and fixed-income markets.

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

He also reiterated FMDQ’s commitment to improving market efficiency, supporting innovation and promoting sustainable growth.

Trading pace exceeds 2025 average

The N426.51 trillion turnover was generated across 143 business days, producing an average daily turnover of about N2.98 trillion.

This is higher than the N2.74 trillion daily average recorded in 2025, when FMDQ generated N676.71 trillion over 247 business days.

READ ALSO: FX, money market instruments power N677tn turnover on FMDQ in 2025

The higher daily trading rate indicates stronger market activity in 2026, particularly in FX and fixed-income instruments influenced by monetary policy.

FMDQ’s performance accelerated significantly after April, with N177.33 trillion added to turnover between May and July.

With seven-month activity already equivalent to 63 per cent of the full-year 2025 figure, maintaining the current pace could push the Exchange towards a new annual turnover record in 2026.

The figures also reinforce the dominant role of FX transactions and short-term government securities in Nigeria’s financial markets, as investors continue to seek higher-yielding assets.