Nigeria's financial markets have achieved a significant milestone, recording a total turnover of N496.61 trillion between January and August 2026. According to data from FMDQ Securities Exchange, this substantial growth is attributed to various market activities. The data highlights the diverse range of transactions that have contributed to this remarkable achievement. This development is a clear indication of the country's thriving financial sector. The turnover is a key indicator of the market's performance and investor activity.
Foreign exchange transactions have dominated the market, accounting for 38.7 per cent of the total turnover during the period. Spot foreign exchange and FX derivatives have been the primary drivers of this growth. This significant contribution from foreign exchange transactions underscores the importance of the FX market in Nigeria's financial landscape. The high volume of FX transactions reflects the country's reliance on foreign exchange for various economic activities. The FMDQ Securities Exchange data provides valuable insights into the market's trends and performance.
Open market operations (OMO) bills have followed closely, accounting for 29.59 per cent of the total turnover. Repurchase agreements (repos) have also made a substantial contribution, representing 14.09 per cent of the total. Other notable contributors include bonds, which accounted for 8.74 per cent, and treasury bills, which represented 8.31 per cent. Unsecured placements and takings have a relatively minor share, accounting for 0.54 per cent of the total turnover. This composition highlights the diverse range of financial instruments in Nigeria's markets.
The strong preference for foreign exchange and short-term fixed-income instruments is driven by investors seeking opportunities in an environment shaped by relatively high interest rates and active liquidity management. This trend is likely influenced by the country's economic conditions and monetary policy. The high interest rates have made short-term fixed-income instruments more attractive to investors. The FMDQ Securities Exchange data suggests that investors are cautiously navigating the market, prioritizing liquidity and security.
The debt capital market has seen fresh fundraising activities, with Emzor Pharma Funding SPV listing a N26.7 billion bond on the FMDQ Exchange. This bond issuance aims to support funding for Nigeria's pharmaceutical and healthcare sector. The five-year, 19 per cent Series 1 Fixed Rate Bond was issued under Emzor Pharma Funding SPV's N40 billion Bond Issuance Programme. This development highlights the growing use of the domestic debt market by companies seeking long-term funding. The bond listing demonstrates the market's capacity to support critical sectors.
The Emzor bond provides another avenue for mobilising capital for local pharmaceutical manufacturing, which is crucial for Nigeria's healthcare sector. Access to long-term financing remains essential for companies operating in this sector. The bond issuance programme is a significant step towards addressing the financing needs of the pharmaceutical industry. This development is expected to have a positive impact on the sector's growth and development. The FMDQ Exchange has approved several bond listings, reflecting the market's growing importance.
In another transaction, FMDQ Exchange approved the quotation of N25.53 billion Commercial Papers issued by Ojaja Pan Africa Limited. The Commercial Papers were issued under the company's N100 billion Commercial Paper Issuance Programme. This quotation gives Ojaja Pan Africa access to the short-term debt market to raise funds for its business operations. The programme comprises three series, with a total value of N25.53 billion. This development reflects the participation of diversified Nigerian companies in the domestic debt capital market.
Key points
- Foreign exchange transactions accounted for 38.7 per cent of the total turnover in Nigeria's financial markets between January and August 2026.
- The debt capital market recorded fresh fundraising activities, with Emzor Pharma Funding SPV listing a N26.7 billion bond on the FMDQ Exchange.
- FMDQ Exchange approved the quotation of N25.53 billion Commercial Papers issued by Ojaja Pan Africa Limited under the company's N100 billion Commercial Paper Issuance Programme.
