The FMDQ Exchange recorded a total turnover of N193.20 trillion in the first quarter of 2026, highlighting robust activity in Nigeria’s fixed income and currency markets as investors gravitated toward highly liquid instruments.
This disclosure was made by the Group Chief Operating Officer, FMDQ Group Plc, Ms. Tumi Sekoni, which was published in FMDQ’s first quarter (Q1) newsletter released on Wednesday, April 15, 2026.
According to FMDQ, the performance achieved over 59 trading days translates to an average daily turnover of N3.27 trillion.
What the data is saying
A breakdown of trading activity shows that Foreign Exchange (FX) transactions led the market, followed by Open Market Operations (OMO) Bills, indicating the dominance of short-term, policy-sensitive instruments.
- With N63.49 trillion, FX accounted for 32.9% of total turnover, underscoring persistent demand for currency trades.
- Open Market Operations (OMO) Bills followed closely with N59.45 trillion, contributing 30.8%, as the Central Bank’s liquidity management tools remained a key driver of activity.
- Combined, both segments accounted for 63.6% of total turnover, reinforcing their dominant role in shaping overall market performance.
- Repurchase Agreements (Repos) contributed N28.49 trillion (14.7%), highlighting funding and liquidity needs
- Treasury Bills and FGN Bonds posted N16.82 trillion (8.7%) and N15.62 trillion (8.1%), respectively
- FX Derivatives accounted for N8.33 trillion (4.3%), indicating moderate hedging activity
- Eurobonds, Unsecured Placements, and Sukuk Bonds jointly contributed less than 1%
Overall, the data points to a market dominated by FX and money market instruments, with limited participation in longer-tenor or less liquid assets.
More insights
The dominance of FX and OMO Bills reflects a broader trend of investors prioritising liquidity, flexibility, and responsiveness to monetary policy signals.
- High repo activity suggests that financial institutions actively managed short-term funding positions during the three-month period ended March 31, 2026.
- Bond market activity remained concentrated in Federal Government of Nigeria (FGN) Bonds.
- Negligible or zero turnover was recorded in other bond categories, such as corporate or sub-national instruments.
- Similarly, the absence of activity in Commercial Papers, Promissory Notes, and Money Market Derivatives indicates a narrow trading focus.
This pattern suggests a cautious investment climate, where participants favour instruments that allow quick entry and exit, particularly in an environment shaped by currency volatility.
What you should know
The Q1 2026 performance builds on a strong full-year outing in 2025, when the FMDQ Exchange recorded a total turnover of N676.71 trillion.
- FX and short-term liquidity instruments were also major drivers of FMDQ’s 2025 full-year turnover.
- The 2025 data similarly showed that FX, repos, and OMO Bills accounted for the bulk of trading activity.
- This reinforces the structural importance of liquidity-driven instruments and CBN’s radical push to mop up excess cash in Nigeria’s financial system.
Taken together, both periods highlight a consistent market pattern—one defined by strong turnover levels, but concentrated participation in short-term and policy-linked instruments, a trend likely to persist in the near term.
