The total spot market turnover for all products traded in the secondary market on the FMDQ Exchange in January 2025 amounted to N54.86trn.
This represents a substantial 33.80 per cent month-on-month (MoM) increase, equivalent to N13.86trn, from the turnover recorded in December 2024.
The significant increase in total spot market turnover was largely driven by notable growth across the foreign exchange, fixed income, and money market segments.
The foreign exchange segment saw a substantial increase of 45.98 per cent, amounting to N7.04trn, while the fixed income segment recorded a 13.23 per cent rise, totalling N1.83trn.
The money market segment also experienced remarkable growth, with a 42.03 per cent increase equivalent to N4.98trn. The surge in money market turnover was primarily attributed to heightened activity in the Repos/Buy-backs product category.
According to the data published in the FMDQ Markets Monthly Report for January 2025 and obtained by THE WHISTLER, the resilience of Nigeria’s financial markets remains evident despite the persistent volatility in the foreign exchange market.
The steady growth in market turnover reflects increasing investor confidence and heightened market activity, signalling broader macroeconomic stability.
The performance of the financial markets aligns with a series of strategic interventions implemented by the Central Bank of Nigeria to stabilize the forex market.
These interventions have included increased foreign exchange sales to Bureau De Change operators, regulatory tightening to enhance compliance and transparency, and efforts to boost liquidity in the official foreign exchange market. These measures have collectively contributed to a more structured and efficient market environment.
The introduction of the Nigeria Foreign Exchange Code, aimed at enhancing transparency and investor confidence, has further reinforced stability in the forex market. Since its launch in Abuja, the FX Code has played a pivotal role in fostering a structured and accountable system while discouraging speculative trading and opaque market practices.
The impact of this regulatory shift has become increasingly evident as market participants adjust their strategies in response to the new guidelines. Traders have responded to the stricter policies by offloading dollar holdings, leading to improved clarity and efficiency in market operations.
The spot FX market turnover on the FMDQ Exchange in January 2025 reached $14.56bn, equivalent to N22.36trn.
This figure represents a 49.43 per cent increase, amounting to $4.82bn, from the turnover recorded in December 2024, which stood at $9.74bn.
In the forex market, the naira strengthened against the US dollar, with the average spot exchange rate decreasing by 1.86 per cent to close at $/N1,536.46 in January 2025, compared to $/N1,564.97 recorded in December 2024.
Additionally, exchange rate volatility declined over the month, with the naira trading within a range of $/N1,475.00 to $/N1,560.00, which was notably narrower compared to the previous month’s range of $/N1,524.88 to $/N1,672.69.
The fixed-income market also experienced strong growth during the review period, with total turnover reaching N15.65trn in January 2025.
This reflects a 13.23 per cent increase, equivalent to N1.83trn, compared to the turnover recorded in December 2024, which stood at N13.83trn.