By Benson Daniel
Trading activity on the FMDQ Exchange rose to N426.51 trillion between January and July 2026, driven largely by strong foreign exchange transactions and increased demand for Open Market Operations bills.
The seven month turnover, contained in the FMDQ July 2026 newsletter, represents about 63 per cent of the N676.71 trillion recorded by the Exchange throughout 2025. Activity also accelerated significantly after April, with N177.3 trillion added between May and July, following N249.18 trillion recorded during the first four months of the year.
Foreign exchange transactions accounted for the largest portion of activity during the period, reflecting sustained demand for dollars and increased trading across Nigeria’s foreign exchange market.
Spot foreign exchange transactions generated N143.34 trillion, representing 33.6 per cent of total FMDQ turnover, while FX derivatives contributed another N17.72 trillion. Combined, the two segments accounted for N161.07 trillion, or approximately 37.8 per cent of total market activity.
The strong performance of the FX segment highlights the growing importance of the FMDQ market in facilitating foreign exchange transactions and providing liquidity to banks, investors and other authorised market participants.
OMO bills were the second largest contributor, generating N126.35 trillion in turnover during the seven month period. The figure represented 29.6 per cent of total activity on the Exchange.
The strong demand for OMO instruments reflects continued investor interest in short term securities amid efforts by banks and other financial institutions to manage liquidity and maximise returns.
Government securities also remained a major component of activity on the Exchange. OMO bills, Treasury bills, Federal Government bonds and Sukuk collectively accounted for approximately N202.55 trillion, representing about 47.5 per cent of total turnover.
Treasury bills generated N37.02 trillion, while FGN bonds contributed N38.84 trillion. Sukuk transactions stood at N330.60 billion, while Eurobonds generated N930.47 billion during the period.
Activity was also recorded across money market instruments, with repurchase agreements and open repos contributing N59.3 trillion. Unsecured placements and takings added another N2.66 trillion, bringing combined turnover from the liquidity instruments to about N61.98 trillion.
The concentration of activity among major financial institutions was also evident during the period. The top 10 dealing member banks accounted for 75.27 per cent of total FMDQ turnover, equivalent to approximately N321.02 trillion.
Stanbic IBTC Bank ranked as the largest dealing member bank between January and July, followed by First Bank of Nigeria and Coronation Merchant Bank. The three leading institutions alone accounted for 52.27 per cent of the turnover recorded by the top 10 banks.
The figures underscore the central role of banks in providing liquidity and facilitating transactions across Nigeria’s foreign exchange, fixed income and money markets.
The increase in FMDQ activity comes amid continued efforts by monetary and financial market authorities to deepen the country’s financial markets, improve liquidity management and strengthen price discovery.
For investors, the high level of activity in FX and fixed income instruments reflects the prevailing market environment, where currency movements, interest rates and liquidity conditions continue to influence investment decisions.
The seven month performance also places the Exchange on course for another strong annual turnover if current activity levels are sustained through the remaining months of the year.
Continued growth in market activity could further strengthen FMDQ’s role in Nigeria’s financial system while providing businesses, investors and financial institutions with broader opportunities to manage foreign exchange and liquidity risks.
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