FMDQ turnover hits N496.61 trillion in eight months, FX, OMO leads

Cumulative turnover of Nigeria’s fixed-income and foreign-exchange transactions on FMDQ Exchange rose 16.43% to N496.61 trillion in the first eight months of 2026, up from N426.51 trillion recorded in the first seven months, with FX trading and government securities dominating activity.

This indicates that FMDQ Exchange’s aggregate turnover rose by N70.10 trillion between the end of July and the end of August 2026, according to FMDQ Exchange’s monthly newsletter.

Nairametrics analysis of transaction data captured in the latest edition of FMDQ monthly newsletter shows top 10 dealing member banks controlling 75.94% of overall turnover while recording an average daily turnover of N3.066 trillion ($2.234 billion per business day) across 162 trading days in January-July.

Although the origin of the heavy inflows was not explicitly stated, the Central Bank of Nigeria’s (CBN) First Quarter (Q1) 2026 Economic Report, the latest of the 2026 series, suggests that part of the N496.61 trillion turnover, equivalent to $361.96 billion, was driven by autonomous foreign-exchange inflows rather than central-bank-mediated flows.

FX and Government Securities drive turnover:

Foreign Exchange (Spot FX and FX Derivatives combined) accounted for N192.32 trillion of the eight-month total, representing 38.73% of all FMDQ activity. A breakdown of the categories shows:

• Spot FX trading: N171.43 trillion ($125.02 billion), the largest individual product category
• FX Derivatives: N20.89 trillion ($15.25 billion)
• Government securities collectively generated N230.27 trillion (46.4% of total turnover), comprising:
• OMO Bills: N146.93 trillion ($107.10 billion), the second-largest turnover category
• FGN Bonds: N42.08 trillion ($30.66 billion)
• Treasury Bills: N41.26 trillion ($30.07 billion)

Repurchase Agreements contributed N69.99 trillion ($50.92 billion), while Eurobonds (N965.19 billion) and Sukuk Bonds (N357.26 billion) recorded minimal activity.

Autonomous FX Inflows outpace banking channel:

The CBN’s Q1 2026 Economic Report shows a significant structural shift in how foreign exchange enters the Nigerian economy.

• Nigeria recorded US$31.34 billion in total FX inflows during the first quarter, up 13.26% from US$27.67 billion in Q4 2025.
• Critically, autonomous sources—non-banking channels—contributed US$21.15 billion (67.5% of total inflows), rising 23.90% quarter-on-quarter.
• By contrast, CBN/banking-channel inflows declined 3.77% to US$10.20 billion, accounting for just 32.5% of total FX flows.

The CBN attributed the surge in autonomous flows to three primary drivers:

Oil exports: Generated US$13.01 billion in Q1 2026, up 18.47% from Q4 2025, supported by higher crude prices and increased refined petroleum product sales

Diaspora remittances: Contributed US$5.30 billion, down 7.50% quarter-on-quarter but remaining the second-largest FX source

Portfolio investment inflows: Rose to US$6.03 billion from US$5.27 billion in Q4 2025, driven by higher purchases of Nigerian equity securities

Non-oil exports added US$2.49 billion, bringing total merchandise export earnings to US$15.49 billion (up 15.96% QoQ).

Market concentration remains high:

FMDQ data for January-July 2026 underscores market concentration among major banking players:

• Top 10 dealing member banks: Controlled 75.94% of overall market turnover (N377.13 trillion)
• Top three banks: Stanbic IBTC Bank Limited, First Bank of Nigeria Limited, and Coronation Merchant Bank Limited jointly accounted for 55.50% of secondary-market turnover recorded by the top 10 (N209.30 trillion combined)

Products recording zero turnover during the period included CBN Special Bills, Promissory Notes, Money Market Derivatives, Commercial Papers, and Other Bonds, reflecting participant preferences for liquid, transparent instruments.

What this means:

The data reveals a capital market increasingly weaned from central-bank interventions and orchestrations.

• Autonomous FX inflows—driven by commodity exports, remittances, and equity market appetite—now represent the dominant source of external liquidity, reducing dependence on CBN-mediated banking channels and interventions.
• For policymakers, the shift signals structural market development never seen in recent past.
• For investors, it underscores the importance of real-sector export dynamics and diaspora engagement in sustaining capital flows.

The challenge ahead lies in translating N496.61 trillion in market turnover and US$21.15 billion in autonomous FX inflows into durable credit expansion for the real economy, rather than hoarding on balance sheets or speculative repositioning.