The FMDQ Securities Exchange recorded a remarkable performance as total market turnover reached $180.85 billion, driven by a sharp increase in trading activity across major segments.
According to the latest monthly market report, the impressive figure reflects a strong recovery in market liquidity and growing investor confidence, supported by recent foreign exchange reforms and the Central Bank of Nigeria’s (CBN) aggressive liquidity management operations.
Key Drivers of Growth
Foreign exchange transactions, including spot deals and derivatives, accounted for the largest portion of the turnover, signalling improved dollar supply into the market following ongoing structural adjustments. The fixed income segment also contributed significantly, boosted by Open Market Operations (OMO) bills and sustained activity in government securities.
The high-interest-rate environment played a crucial role, as the Debt Management Office (DMO) and CBN continued to offer attractive yields on Treasury Bills and FGN Bonds to help control inflation. This encouraged heavy participation from institutional investors, particularly Pension Fund Administrators (PFAs) and asset managers, resulting in consistent oversubscription at recent auctions.
The corporate debt market also showed positive momentum, with several notable issuances of commercial papers and corporate bonds by companies in the financial services, manufacturing, and consumer goods sectors.
Analysts’ Views
Capital market experts have welcomed the development as a sign of improving market depth and efficiency.
“The $180.85 billion milestone is a clear indicator that market liquidity is rebounding strongly,” said a senior investment strategist in Lagos. “The transparency provided by the FMDQ platform has given both domestic and foreign investors the confidence to commit capital, especially into fixed-income instruments.”
Outlook
With average daily turnover maintaining a strong upward trend, stakeholders believe the current momentum in the fixed-income and currency markets will help provide a solid buffer for the broader economy as macroeconomic conditions gradually stabilise.
The latest data underscores the growing importance of the FMDQ Exchange as a key pillar in Nigeria’s financial market infrastructure, supporting both government financing needs and private sector capital raising.
