Nigeria’s fixed-income and foreign exchange (FX) markets recorded a combined turnover of N24.03tn in September 2026, representing a 94.89 per cent increase from the N12.33tn recorded in August, as transactions in foreign exchange, money market instruments and government securities drove activity across the financial markets.
The increase, equivalent to N11.70tn, reflects a significant expansion in trading activity during the month, according to the September 2026 Fixed Income and Currency (FIC) Markets Monthly Report by FMDQ Group.
Foreign exchange and money market transactions remained the dominant contributors to market activity, accounting for a combined 54.22 per cent of total turnover during the period.
The report highlights the importance of FX spot transactions, derivatives and short-term liquidity management instruments in shaping trading activity across Nigeria’s financial markets.
Foreign exchange turnover rose sharply in September, reaching N7.05tn, equivalent to $17.08bn, as transactions across spot and derivatives markets increased compared with the preceding month.
The FX market recorded a month-on-month increase of 87.08 per cent in dollar-denominated turnover from $9.13bn in August, reflecting stronger trading activity across the various FX products.
The increase was jointly driven by growth in spot foreign exchange transactions and derivatives trading, with both segments recording significant month-on-month increases.
FX spot turnover increased by 68.61 per cent, representing an additional $3.33bn in transactions, while FX derivatives turnover rose by 108.02 per cent, equivalent to an increase of $4.62bn.
The stronger performance of the derivatives segment further increased its contribution to total FX market turnover, highlighting the growing importance of forward-looking currency transactions in the market.
FX derivatives accounted for 52.12 per cent of total foreign exchange turnover in September, an increase of 5.25 percentage points from the preceding month.
The report attributed the growth in derivatives activity to increases across all major product categories, including FX swaps, forwards, futures and other derivatives.
FX swaps turnover rose by 34.32 per cent month-on-month, while FX forwards increased by 54.75 per cent. FX futures recorded the strongest percentage growth, surging by 840.07 per cent, while turnover in other derivatives advanced by 128.88 per cent.
The figures indicate that derivatives transactions played a substantial role in the expansion of Nigeria’s foreign exchange market during the month, as market participants increased activity across instruments used for currency transactions and risk management.
Beyond the foreign exchange market, open market operations (OMO) bills and Central Bank of Nigeria (CBN) Special Bills also maintained a significant presence in the fixed-income and currency markets.
Their combined contribution to total FIC turnover increased by 12.52 percentage points to 23.96 per cent in September, underscoring the importance of monetary policy instruments in driving transactions and managing liquidity in the financial system.
OMO bills are used by the CBN to manage banking system liquidity, while other money market instruments provide avenues for financial institutions and investors to manage short-term funding requirements and investment positions.
The increase in their contribution to total market turnover suggests that transactions involving liquidity management instruments accounted for a larger share of trading activity during the period.
Meanwhile, movements in the foreign exchange market showed that the naira weakened slightly against the United States dollar in September.
The local currency depreciated by 0.31 per cent, or N1.26, to an average exchange rate of N412.75 per dollar from N411.49 per dollar in August, according to the report.
The naira traded within a range of N410.67 to N414.90 per dollar during the month, compared with a narrower range of N410.80 to N412.00 per dollar in August.
The exchange-rate movement indicated a modest depreciation during September, despite the significant increase in trading activity across the FX market.
The report’s figures provide an overview of transactions across Nigeria’s organised fixed-income and currency markets, where foreign exchange products and short-term financial instruments remain important drivers of turnover.
The September performance followed a month in which total FIC market turnover stood at N12.33tn, making the latest increase one of the most significant month-on-month expansions in trading activity over the period covered by the report.
The sharp rise in turnover was accompanied by stronger activity in both spot and derivatives markets, while the increased contribution of OMO bills and CBN Special Bills highlighted the role of monetary policy operations in shaping liquidity conditions.
However, the increase in turnover does not, on its own, indicate a corresponding improvement in the naira’s value, as the currency recorded a marginal depreciation against the dollar during the month.
The data instead point to increased trading activity across the financial markets, with FX derivatives and money market instruments accounting for important portions of transactions recorded in September.
