Trading activity in Nigeria's fixed-income market strengthened in September, with transactions rising by 12.1% to N41.07 trillion, up from N36.62 trillion in August. The number of trades also increased to 11,652, from 9,192 in the preceding month. This growth was driven by a stronger pace of activity across various instruments. The September figure covered transactions between September 1 and September 30, 2026, while the August data covered August 1 to 31.
OMO bills remained the dominant instrument in the market, accounting for N28.05 trillion of the total face value traded, compared with N26.30 trillion in August. This represents a 6.7% increase in the value of OMO bills traded. The number of trades also rose significantly, from 4,037 in August to 5,485 in September. The growth in OMO bills contributed to the overall increase in market activity.
FGN bonds were another major contributor to the month-on-month expansion in fixed-income activity. The face value traded in FGN bonds climbed to N6.96 trillion in September, from N4.59 trillion in August, representing a 51.6% increase. The number of FGN bond trades also jumped from 2,471 to 3,889 during the period. This significant growth in FGN bond transactions supported the overall market activity.
Treasury bills also recorded an increase in transactions, although at a more modest pace. Transactions in Treasury bills rose to N5.99 trillion in September, from N5.69 trillion in August, representing an increase of about 5.2%. However, the number of Treasury bill trades declined to 2,227, from 2,666 in August. This mixed performance in Treasury bills was also reflected in the market.
Sukuk recorded the sharpest percentage increase in face value, although from a much smaller base. Transactions rose to N66.79 billion in September, from N40.11 billion in August. The number of Sukuk trades also increased from 18 to 51. This growth in Sukuk transactions was notable, despite its relatively small market size.
The market recorded 11,652 trades worth N41.07 trillion in September, compared with 9,192 trades valued at N36.62 trillion in August. The number of market participants also edged up to 30 from 29. The increase in trading activity came alongside movements in yields across the different instruments. This growth in market activity was widespread across various participants.
The growth in Nigeria's fixed-income market was driven by increased transactions across various instruments. The market saw significant growth in FGN bond transactions, as well as more modest increases in Treasury bills and Sukuk. OMO bills remained the dominant instrument in the market.
Key points
- FGN bond transactions jumped 51.6% to N6.96 trillion in September.
- OMO bills accounted for N28.05 trillion of the total face value traded.
- Trading activity in Nigeria's fixed-income market rose by 12.1% to N41.07 trillion in September.
