Activities across Nigeria’s financial markets recorded a major upswing as total turnover on the FMDQ Securities Exchange climbed to $180.85 billion, driven by a sharp increase in transaction volumes across key market segments.

The strong performance signals improving market liquidity and renewed investor confidence, largely supported by ongoing foreign exchange reforms and aggressive liquidity management interventions by monetary authorities.

According to the exchange’s latest monthly market report, trading activities in the foreign exchange and Open Market Operations (OMO) bills segments emerged as the major drivers of the market rally. Spot foreign exchange transactions and FX derivatives accounted for the largest share of total turnover, reflecting improved forex supply conditions following recent structural adjustments in the currency market.

The fixed-income segment also recorded strong activity, buoyed by intensified liquidity management operations by the Central Bank of Nigeria.

Analysts noted that the prevailing high-interest-rate environment in the debt market further fueled trading momentum. The Debt Management Office and the apex bank have continued to offer attractive yields on Treasury Bills and Federal Government bonds as part of efforts to curb inflationary pressures.

This development encouraged institutional investors, particularly pension fund administrators and asset managers, to channel significant funds into government securities, leading to sustained oversubscriptions at recent debt auctions.

Meanwhile, the corporate debt market maintained steady growth, with several commercial papers and corporate bonds listed on the FMDQ platform by companies in the financial services, manufacturing and consumer goods sectors seeking additional working capital support.

Commenting on the market performance, capital market analysts said the rising transaction volumes indicate stronger resilience within Nigeria’s financial system and its capacity to support broader economic growth.

A senior investment strategist in Lagos described the $180.85 billion turnover milestone as evidence of improving liquidity conditions across the market.

According to the analyst, the integrated trading and reporting framework provided by the FMDQ platform has enhanced transparency and boosted investor confidence, especially among foreign portfolio investors participating in Nigeria’s fixed-income market.

With average daily turnover sustaining an upward trajectory, stakeholders expect continued depth in the fixed-income and foreign exchange markets to provide support for the economy as macroeconomic conditions gradually stabilise.