February 20, (THEWILL) — Nigeria’s fixed income and currency market recorded a total turnover of N676.71 trillion on the FMDQ Exchange between January and December 2025, underscoring sustained activity across the country’s debt and foreign exchange segments.
The turnover was generated over 247 trading days, translating to an average daily turnover of N2.74 trillion.
The performance reflects continued participation from banks, institutional investors, and monetary authorities, as well as active liquidity management throughout the year.
FX and Short-Term Instruments Drive Activity
Market data show that foreign exchange and short-term funding instruments dominated trading activity in 2025.
Foreign exchange (FX) transactions led the market with N254.42 trillion, accounting for 42.68% of total turnover. Repurchase agreements (Repos) followed with N166.91 trillion, contributing 24.67%.
Combined, both segments accounted for more than N421 trillion, highlighting the central role of currency trading and short-term liquidity management in overall market performance.
Open Market Operations (OMO) Bills recorded N139.08 trillion, representing 20.55% of aggregate turnover. The strong OMO activity reflects sustained liquidity sterilisation efforts and monetary policy implementation during the period.
Activity Across Other Fixed Income Segments
In the government securities market, Treasury Bills contributed 6.50% of total turnover, while Federal Government Bonds accounted for 5.51%. Unsecured placements and takings made up a marginal 0.09% of total activity.
Additional instruments traded during the period included FX derivatives, Eurobonds, Sukuk bonds, promissory notes, and other bonds, though these represented relatively smaller portions of total turnover compared to spot FX and money market instruments.
The reported turnover covers transactions executed among dealing members, between members and clients, and with the central bank. It includes trades in foreign exchange, money market instruments (such as repos, buy-backs, and unsecured placements), treasury bills, bonds, and derivatives.
However, the figures exclude primary market auctions in Treasury Bills, bonds, and foreign exchange, focusing strictly on secondary market and member-driven activity.
The strong showing in 2025 reinforces the Exchange’s position as a key platform for price discovery, liquidity management, and fixed income trading in Nigeria’s financial markets.
The dominance of FX and short-term instruments further highlights the market’s sensitivity to liquidity conditions and currency dynamics during the year.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
