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Nigeria’s financial markets recorded a total turnover of N317.62 trillion in the January to May 2026 period, with foreign exchange trading and Open Market Operation (OMO) Bills accounting for the bulk of activity, underscoring the continued dominance of short-term instruments and FX transactions in the country’s trading landscape.
According to the May 2026 edition of the FMDQ Group newsletter, FX trading, comprising Spot FX and FX derivatives, contributed the largest share of the total turnover at 35.58 per cent.
OMO Bills followed closely with 32.03 per cent, highlighting the scale of liquidity management operations in the market and the strong investor appetite for CBN-issued instruments over the period.
Combined, FX trading and OMO Bills represented more than two-thirds of total market turnover, reflecting the central role both segments continue to play in shaping market liquidity, price discovery and portfolio positioning among market participants.
FMDQ further revealed that Repurchase Agreements, commonly known as Repos, accounted for 13.68 per cent of market turnover. Bonds made up 9.56 per cent, while Treasury bills contributed 8.57 per cent. Unsecured Placements and Takings represented the smallest share at 0.58 per cent.
The dominance of FX transactions signals sustained activity in the foreign exchange market, as businesses, investors and other market participants continued to engage in hedging, speculative and settlement-related trades. It also points to the ongoing importance of the FX market in Nigeria’s broader financial system, particularly amid exchange rate adjustments and efforts to stabilise the naira.
OMO Bills’ strong contribution also reflects the Central Bank of Nigeria’s continued reliance on open market operations as a key liquidity management tool. By issuing these bills, the apex bank mops up excess liquidity in the banking system, influences short-term interest rates and helps maintain monetary stability.
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The sizeable turnover in OMO Bills suggests strong participation by banks and institutional investors seeking relatively safe short-term returns.
Commenting, Group Chief Operating Officer, FMDQ Group Plc, Tumi Sekoni, said the newsletter reflects the group’s continued commitment to promote inclusive financial education, facilitate capital access across diverse sectors and advance its broader mission of deepening the Nigerian financial markets and strengthening investors’ confidence.
Repos and Treasury bills also remained important components of market activity, even though their contributions were smaller than FX and OMO Bills. Their presence in the turnover mix indicates that participants continued to favour instruments that offer liquidity and short-dated yield opportunities, especially in a market environment shaped by policy uncertainty and interest rate expectations.
The figures further reinforce the continued tilt of Nigeria’s financial markets toward short-term instruments, with activity concentrated in FX, money market products and other fixed-income assets. This pattern suggests that investors remained cautious, balancing the need for yield with the desire for flexibility in a changing macroeconomic environment.
Market analysts say the composition of turnover is likely to remain influenced by monetary policy direction, FX liquidity conditions and the pace of fiscal and economic reforms. As the year progresses, trading patterns may shift depending on inflation trends, interest rate movements and developments in the foreign exchange market.
Overall, the January to May 2026 turnover figures point to a market still driven by liquidity management tools and foreign exchange activity, with FX and OMO Bills firmly at the centre of transactions.
