Bamidele Famoofo
Total secondary market turnover recorded on FMDQ Exchange in April 2025 was ₦45.71trn, representing a MoM decrease of 21.47 per cent (₦12.50trn) and a YoY increase of 66.22 per cent (₦18.21trn) from March 2025 and April 2024 figures, respectively.
Foreign Exchange (FX) and CBN Bills^ transactions dominated secondary market activity, jointly accounting for 70.01 per cent of the total secondary market turnover in April 2025.
Primary Market Sovereign Securities
In April 2025, the DMO sold T.bills valued at ₦1,144.97bn across its auctions, representing a 59.42 per cent (₦1,676.88bn) MoM decrease in the value of T-bills sold across its auctions in March 2025 (₦2,821.85bn). Meanwhile, the DMO sold FGN Bonds worth ₦397.90bn, reflecting a MoM increase of 46.70 per cent (₦126.67bn) on the amount sold in March 2025 (₦271.23bn). The demand for sovereign securities remained strong during the review period, with T.bills and FGN Bonds oversubscribed1 by 122.37 per cent and 41.70 per cent. Meanwhile, the CBN sold OMO Bills worth ₦1,812.85bn, representing an 8.11 per cent (₦135.95bn) increase on the amount sold in March 2025 (₦1,676.90bn). These securities were oversubscribed by 63.23 per cent.
Primary Market Non-Sovereign Securities
In April 2025, a Corporate Bond worth ₦8.00bn was listed on FMDQ Exchange while a Corporate Bond worth ₦100.00bn matured and was redeemed. Consequently, the total outstanding value of Non-Sovereign Bonds declined by ₦92.00bn, representing a 4.05 per cent decrease to ₦2,178.64bn. Meanwhile, the total value of CPs quoted on FMDQ Exchange in April 2025 decreased MoM by 85.50 per cent (₦357.15bn) to ₦60.58bn from ₦417.73bn in March 2025. During the review period, thirteen (13) CPs were quoted, with the majority issued by institutions in the Financial Services (6), Oil and Gas (2), and Real Estate (2) sectors (See Chart 3) Additionally, due to CP maturities amounting to ₦91.51bn, the outstanding value of CPs declined MoM by 2.99 per cent (₦30.93 bn) to ₦1,002.36bn.
Spot Market
Total spot market turnover for all products traded in the secondary market recorded on FMDQ Exchange in April 2025 was ₦43.10rn, representing a MoM decrease of 19.89 per cent (₦10.70trn) from March 2025 figures. The MoM decrease in total spot market turnover was driven by the decrease in FI, MM, FX turnover by 5.55 per cent (₦0.96trn), 49.38% (₦7.22trn) and 11.50 per cent (₦2.52trn) respectively. The decrease in MM turnover was solely driven by the MoM decrease in the Repos/Buy-backs product category. Similarly, the decrease in FI turnover was driven by the MoM decrease in T.Bills and FGN Bonds, while CBN Special Bills remained inactive during the review period.
Spot FX Market
Spot FX market turnover recorded on FMDQ Exchange was $12.13bn (₦19.40trn) in April 2025, representing a 15.19 per cent ($2.17bn) MoM decrease from the turnover recorded in March 2025 ($14.30bn). In the FX Market, the Naira depreciated against the US Dollar, with the spot exchange rate ($/₦) increasing by 4.55% ($/₦69.79) to close at an average of $/₦1,602.79 recorded in April 2025 from $/₦1,533.00 recorded in March 2025. (See Chart 8) Further, exchange rate volatility increased in April 2025, with the Naira trading within an exchange rate range of $/₦1,534.00 – $/₦1,644.00 compared to $/₦1,499.00 – $/₦1,549.00 recorded in March 2025.
FI market turnover in April 2025 was ₦16.30trn, representing a MoM decrease of 5.55 per cent (₦0.96trn) from the turnover recorded in March 2025 (₦17.26trn). The MoM decrease in turnover was driven by the decrease in T.Bills and FGN Bonds transactions during the review period. (See Chart 9) In April 2025, the trading intensity (TI) for T.bills decreased MoM by 0.12bps to 0.33 whilst the TI for FGN Bonds remained at 0.07.
In April 2025, the sovereign yield curve experienced a 0.04ppts MoM decrease in yield spread1 to 0.76ppts. This indicates a slightly upward-sloping curve at the short end, while the longer end of the curve remains inverted. During the review period, one (1)-year real (inflation adjusted) yields in Nigeria remained negative at (1.86%), compared to selected emerging markets.
Total turnover in the MM segment decreased MoM by 49.38 per cent (₦7.22trn) to ₦7.40trn in April 2025. The MoM decrease was driven by the 49.40 per cent (₦7.22trn) decrease in Repos/Buy-backs. The average O/N rate and OPR rate (secured lending rate) decreased MoM by 3.40ppts and 3.36ppts, respectively, to close at an average of 27.23 per cent and 26.81 per cent in April 2025.
Total turnover in the FX derivatives segment in April 2025 was $1.63bn (₦2.60trn), representing a MoM decrease of 43.33 per cent ($1.24bn) from March 2025 figures ($2.87bn). The MoM decrease in the FX derivatives turnover was jointly driven by the 43.21 per cent ($1.19bn) and 45.90% ($0.06bn) decrease in FX Swaps and FX Forwards transactions, respectively during the review period.
In the Cleared Naira-Settled (USD/NGN) Non-Deliverable Forwards market, the near month contract (NGUS Apr 30, 2025) expired with no open positions settled during the period. No new far month (60M) contract2 was introduced in the Cleared Naira-Settled Non-Deliverable Forwards market in the review period, continuing the trend since August 2023. Consequently, the TTM of the farthest open contract is nine (9 months (i.e., NGUS JAN 28, 2026 contract). The cumulative NV of open Cleared Naira-Settled Non-Deliverable Forwards contracts remained at $0.02bn as at April 30, 2025, representing a YoY decrease of 98.64% ($1.57bn), respectively.
