TRADING momentum strengthened considerably on FMDQ Exchange in 2025, as total transactions across fixed income, money market and foreign exchange segments climbed to N676.71 trillion. The performance reflects sustained liquidity flows and elevated participation in Nigeria’s secondary financial markets over the course of the year.

Data drawn from the FMDQ’s official transaction review show that trading was conducted over 247 business days between January and December 2025. Cumulatively, this translated to an average daily turnover of approximately N2.74 trillion, underlining the depth of activity on the platform. Market participation remained broad-based, with banks, asset managers, corporates and monetary authorities actively executing trades to manage liquidity positions, currency exposures and investment portfolios.

A closer examination of the turnover composition reveals that foreign exchange (FX) transactions and short-term liquidity instruments were the principal drivers of activity. These categories dominated trading flows throughout the year, reinforcing the centrality of currency management and short-duration funding strategies within Nigeria’s financial system.

Foreign exchange transactions emerged as the single largest contributor, recording N254.42 trillion and accounting for 42.68 percent of total turnover. The strong FX volumes reflect persistent demand for currency trading and repositioning in an environment shaped by exchange rate adjustments and evolving monetary conditions.

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Repurchase Agreements (Repos) ranked second, generating N166.91 trillion and representing 24.67 percent of total activity. Repos, which serve as critical tools for short-term liquidity management, remained heavily utilised by market participants seeking to manage funding needs and optimise balance sheet efficiency.

Open Market Operation (OMO) bills followed with N139.08 trillion in trades, equivalent to 20.55 percent of aggregate turnover. OMO instruments continued to play a significant role in liquidity absorption and monetary policy transmission, drawing consistent participation from institutional investors and banks.

Treasury bills posted N44.00 trillion in transactions, accounting for 6.50 percent of the total, while Federal Government bonds generated N35.31 trillion, contributing 5.51 percent. Although smaller relative to FX and money market volumes, these instruments remained essential components of investment portfolios, offering yield opportunities and duration exposure in the fixed income space.

Unsecured placements and takings made up just 0.09 percent of turnover, reflecting the market’s preference for secured or structured short-term instruments over unsecured funding arrangements.

Combined, FX trades and repos amounted to over N421 trillion, well above half of the overall turnover recorded in 2025. This concentration underscores the dominant influence of currency transactions and liquidity recycling mechanisms in shaping trading dynamics during the period.

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Activity was also recorded across derivatives and alternative debt instruments. FX derivatives transactions reached N34.42 trillion, signalling increased hedging activity as participants sought to manage exchange rate risks. Eurobonds accounted for N1.15 trillion in trades, while Sukuk bonds generated N815.76 billion. Promissory notes totalled N6.1 billion, and other bonds contributed N0.26 billion to the overall figure.

In a statement accompanying the 2025 review, Group Chief Operating Officer of FMDQ Group Plc, Ms. Tumi Sekoni, outlined the Exchange’s strategic priorities going forward. She emphasised the importance of sustained collaboration with regulators and market stakeholders to strengthen governance standards, deepen liquidity and promote sustainable market development.

Ms Sekoni expressed appreciation to dealing members and other stakeholders for their continued confidence in the platform, noting that the Exchange remains committed to reinforcing the architecture of Nigeria’s financial markets. According to her, enhanced transparency, operational efficiency and innovation will remain central to the Exchange’s long-term growth agenda.

The Exchange clarified that the turnover figures were compiled from trade submissions by its dealing members. The data cover secondary market transactions across foreign exchange, treasury bills, money market instruments, including repurchase agreements, Buy-backs and unsecured placements/takings, as well as bonds (Federal Government and other bonds), FX and money market derivatives.

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Importantly, the reported figures exclude primary market auctions in treasury bills, bonds and FX conducted by the monetary authorities. Instead, they reflect transactions executed in the secondary market among dealing members, between members and their clients, and between members and the Central Bank of Nigeria (CBN).

Overall, the N676.71 trillion turnover recorded in 2025 highlights the scale, resilience and growing sophistication of trading activity on the Exchange, positioning it as a pivotal hub for liquidity management and price discovery within Nigeria’s financial system.